What is the Junction?

The Junction Fund is a specialist retail park fund, owning 11 core retail parks and two industrial properties throughout the UK, and as at 30 December 2008 had a total floor space of 3.1 million sq feet.  Following a capital raise in May 2009, Capital & Regional currently holds 13.4% of the fund and acts as Property and Asset Manager.  Aviva Investors (formerly Morley Fund Management) currently acts as Fund Manager.

Investors hold units in a Jersey Property Unit Trust (JPUT) which allows exposure to a diversified portfolio of properties without direct investment and the ability to transfer units without incurring Stamp Duty Land Tax.

The fund's investment criteria are:

• At least 80,000 sq ft multi-let retail park, freehold or long leasehold.
• Planning consent for open A1, bulky goods or a mix thereof.
• Asset management opportunities.
• Either the dominant scheme in a local catchment area, or the ability to become so.

The Junction specialises in prime mixed-use retail parks.  Open A1 consent allows any sort of retailing (including fashion) whereas bulky goods consent typically only allows the sale of goods that cannot easily be carried away by the customer.  This includes DIY chains, furniture and carpet retailers, and electrical outlet stores.

The portfolio is broadly split 40% to open A1 and 60% to bulky goods.