Retail park bought by Korean investors for £175m

Gallagher Shopping Park

Korean investors have bought Gallagher Shopping Park in Wednesbury for £175m.

The 195,000 sq ft retail park, at junction 9 of the M6, is home to Next, Currys, TK Maxx and a range of furniture stores and restaurants.

Korea Asset Investment Management (KAIM) has bought the site from KKR, which had spent £123m in 2014 on unifying ownership and a further £17m on development.

Along with its operating partner, Quadrant Estates, it brought together three separate car parks to create a single retail park, while also adding four restaurants to provide a food and beverage offer.

KKR said the deal is the largest single asset sale in the UK retail warehouse sector this year and the first time Korean investors have ever stepped into UK retail.

Guillaume Cassou, head of European real estate at KKR, said: “We backed a fundamentally good asset in need of repositioning and Quadrant implemented an intensive business plan over four years that has resulted in a great end product, which we have now sold to long term income-focussed capital.”

Sangmin Lee, chief investment officer of KAIM, added: “We are attracted to it by its inherent strength evidenced by the retailers’ trading performance and location.”