Borough Council buys The Malls, Basingstoke off KPI
Published: 01 April, 2010
Basingstoke and Deane Borough Council exchanged contracts yesterday to buy The Malls shopping centre from co-owner Key Property Investments (KPI), a joint venture between St. Modwen Properties plc and Salhia Real Estate Company. The council is purchasing the property company's 65 per cent share, and becoming the sole owner of the town's shopping centre.
The sale comes shortly after the council agreed funding for its £6.25m makeover plans for The Malls which will help transform the shopping centre that was originally built in the 1970s.
KPI is responding to the current economic climate by taking a prudent approach to where it invests its capital, focusing activity on those opportunities which are best suited to its business model.
Basingstoke and Deane Borough Council Corporate Director Dorcas Bunton said: "This buy-out is an opportunity for the council to take full control of the centre which will allow us to work towards improving the overall image of the area and our long term vision for the borough whilst progressing our improvement plans for The Malls.
"It is a strategic investment for the council and the right one for the town and borough."
Tim Seddon, St. Modwen's Regional Director for London and the South East, said: "This deal will allow us to focus our investment in schemes core to our portfolio, including our successful town-centre regeneration projects in Wembley and Farnborough."
Work will start on The Malls improvement plans this summer, including removing the 1960s concrete overhangs and installing a clear roof canopy that protects the centre from bad weather but doesn't enclose it, allowing natural light and air to circulate.
The biggest transformation though will be outside along Alencon Link where a new landmark gateway entrance to The Malls will be created to give a better first impression of the town when people arrive from the railway station.
The borough council owns the land for the 300,000 sq ft shopping centre but in 1978 granted a long lease for the site to a pension fund, KPI, which it purchased in 2004.
