Henderson fund benefits from Bullring stake

Henderson Global Investors has injected its stake in the Birmingham Bullring into a new shopping centre fund, targeting prime shopping malls in the UK.

To kick-start the fund, which will have a target size of about£1 billion, Henderson has also included its holdings in Glasgow's Buchanan Galleries and Princes Quay at Hull.

Henderson's strategy for the UK Shopping Centre Fund is to focus on top-of-the-range malls, and it expects to outperform the benchmark IPD Index with annual returns of about 10 per cent over five years.

Fund director Neil Varnham said: 'Centres of more than 540,000 sq ft (50,000 sq m) have consistently outperformed other shopping centre sub-sectors, and it is these vibrant, large-footfall locations that are expected to show the strongest growth.'

At the same time, Henderson and its partners in the Birmingham Alliance have sold their leasehold interest in the Martineau Place retail development for£93 million. Martineau Place generates annual rents of£6.3 million.

The Birmingham Alliance was advised by DTZ and Franc Warwick.