In one of the biggest-ever shopping centre sales a joint venture between Apollo Real Estate and Hark Group has acquired the 1million-sq ft Telford shopping centre from Universities Superannuation Scheme for £442m. This reflects a net initial yield of 4.86 per cent.
Telford shopping centre is a regional mall attracting 15 million visitors a year. The local council has ambitious plans to upgrade the centre as part of its wider regeneration of the town centre.
Home to some 175 stores and 3,600 car spaces, the centre is anchored by Asda, Marks & Spencer, House of Fraser, Debenhams, Bhs and Primark. The site contains 20 acres of undeveloped land.
USS has owned the centre since 1990, and the sale follows other disposals at the Trinity Quarter in Leeds and the Gyle shopping centre in Edinburgh. The proceeds will be reinvested in the 450,000-sq ft Grand Arcade scheme in Cambridge, which is due to open in Spring 2008.
David Henderson-Williams of Hark Group said: "We are very pleased to have secured another project with Apollo Real Estate. Our intention is to extend the centre by adding more retail, leisure facilities and residential space. We look forward to making the scheme into more of a regional destination as it is an ideal location, with links from public transport, M54 and M6 motorways and an excellent retail offering, being home already to three major department stores."
DTZ and Strutt & Parker acted for the purchaser and Jones Lang LaSalle advised USS.
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