Henderson Global Investors has acquired a retail asset at 8-12 Neal Street, in London's Covent Garden, from a private Irish investor. The 500-m2 property is let to Mango for a further 13 years. It was acquired for £16.5 mln (EUR 20 mln), representing a net initial yield of 5.25%.

The purchase was made on behalf of Warburg Henderson's Koop Fund.

'We have acquired a strong asset with good income potential from a strong covenant paired with a centrally located, top retail destination,' said Jamie Johnson, portfolio manager at Henderson Property. 'It offers the best conditions for stability in cash flow and an additional increase in value with the opportunity to reconfigure the store after the expiration of the 13-year lease.'

He added: 'The choice of asset reflects Henderson's current views on the UK market for which it is forecasting strong rental performance across the prime Central London retail market.'

The acquisition represents the first outside of Germany for Warburg Henderson's Koop Fund - a club mandate, made up of four German pension funds. The fund targets both office and retail assets, which are considered ‘low risk’ in Western Europe. The target rate of return is 6.5% (IRR).

Henderson was advised by Cushman & Wakefield. The vendor was advised by Morgan Williams and Jones Lang LaSalle.