Retail Property - Hermes puts up two parks for Junction stake

Fund manager Hermes, on behalf of the British Telecom Pension Fund, has injected two properties worth£66.85 million into the Junction Fund.

The specialist retail park fund, set up by Capital & Regional and Morley Fund Management, has now grown its portfolio to 16 parks with a value of£513 million.

The parks are the Reading Retail Park in Reading, Berkshire, and the Ocean Retail Park in Portsmouth, Hampshire. The 11,000 sq m Reading park is let to Focus, MFI and Carpetright, while the Portsmouth scheme provides 15,600 sq m of retail space let to Homebase, Toys R Us and Comet, as well as 6,000 sq m of adjoining industrial space.

Hermes has taken units in the fund in return for the properties, meaning that Capital & Regional's interest in the fund has fallen from 35 to 28 per cent.

Capital & Regional chief executive Martin Barber said: 'Our success in attracting such a respected investor provides a larger asset base over which to gear our expertise to create value.'

Eventually, the managers plan to grow the fund to more than£1 billion by bringing in more outside investors.