SLI'S EPGF to fund 70m Tarawa Retail park in Poland

Standard Life Investments, one of the largest property investors in Europe, has signed an agreement with developers Helical Poland to fund a 170m retail park near Opole in Poland.

Secured on behalf of its European Property Growth Fund (EPGF), Tarawa Retail Park will be anchored by the Carrefour Group, the world's second-largest retailer and the largest in Europe.

Sourced via SLI's Paris office, the 36,000sqm scheme will comprise a hypermarket, a DIY store, ten retail warehouse units and a retail gallery. With construction starting in early October 2008, the project is expected to be completed in September 2009.

With EPGF's last tranche of equity now fully committed, the fund now consists of 32 properties in 10 countries across Europe, Standard Life Investments is now in the process of raising a new, third tranche of equity from investors across the globe. The current value of the Fund is approximately 1820m (as at 31/12/07).

Will Fulton, Fund Manager of EPGF, Standard Life Investments, said: "I am delighted that EPGF has completed this transaction which adds exposure to a new product in one of the strongest sectors of the European economy. The GDP growth in Poland last year was 6.5% and it is expected that consumer spending will increase by more than 5% in 2008.

Such growth contributes to strong demand for retail accommodation, especially in such a prime location.

"Helical Poland has considerable retail experience and this agreement is another example of our strategy of collaborating with the best developers in the market."

In a separate transaction, EPGF has also acquired a 122m development in Rennes, France from the developer Kermarrec Promotion. To be completed in Q3 2009, it will consist of a new 10,291sqm office building over ground and six upper floors with 290 car spaces.

EPGF has delivered an annualised total return over the last three years of 18.5% (net of all fees, to 31/12/07). Since inception in late 2001, the fund has delivered an annualised return of 11.7% (net of all fees, to 31/12/07).

In October 2002 SLI successfully closed EPGF, exceeding its original target. EPGF was restructured in June 2005 principally due to demand from existing partners to extend the life of the Fund and give it greater flexibility. As a result, it moved from a closed-ended, finite life structured fund to an innovative open-ended unitised structure.

The objective of the Fund is to invest in a high quality diversified portfolio of commercial properties across Europe, with a focus on mature, developed Eurozone markets, and a limited exposure to non-Eurozone markets. The Fund invests predominantly in the office, industrial/logistics and retail sectors with a view to maximising growth by active asset management.