Former Toys ‘R’ Us estate deal set to transform portfolio value

Chorley-based asset and property management company FI Real Estate Management has announced its appointment to provide full asset, property and facilities management services to the 31 assets, which made up the freehold and long leasehold portfolio of the former Toys ‘R’ Us estate.

These include the former Liverpool and Warrington stores.

The newly-named Duke portfolio, which spans the UK and is 1,872,409 sq ft in total, was put into special servicing with integrated loan servicing and advisory firm, Solutus, following Toys ‘R’ Us (UK) Ltd entering administration in February.

The portfolio is owned by Toys R Us Properties (UK) Ltd which currently has secured debt of £263m, however the distressed portfolio specialist has recognised its potential appeal to successful out-of-town retail operators and as prime development locations.

Tim Knowles, FI Real Estate Management managing director, said: “We have welcomed the opportunity and challenge of fully managing this portfolio.

“We have agreed a business plan that allows us to preserve and unlock value without the need to make pressured decisions.

“There is still life in the UK retail market where there are many high-quality retailers wanting to expand their portfolio into these prime sites.”

Cushman and Wakefield and Morgan Williams have been appointed as sales and marketing agents.