LSR and Pramerica latch on to convenience

The Local Shopping REIT (LSR) has entered into a joint venture with Pramerica Real Estates Investors to invest in retail parades and precincts throughout the UK. The partners will commit up to £37m of equity which, together with gearing, provide a total of about £100 million to invest in the UK neighbourhood and convenience retail sector.

While LSR and Pramerica will act as co-investors; LSR will act as manager and be responsible for sourcing the investments for what is expected to be a five-year project. They will identify assets with significant potential for future rental growth and the opportunity to deliver added value through active asset management. Transactions will range from £1.25m to £7m.

The focus will mainly be on retail parades and precincts located in suburban and neighbourhood locations where the properties are well placed to support the convenience and top-up shopping requirements of the surrounding population. The joint venture has agreed to buy a property in Stanwell, Middlesex, which is let to Sainsbury’s and local tenants for £1.6m.