Capital & Regional back on the acquisition trail
Published: 09 February, 2011
Capital & Regional has bought the Waterside shopping centre in Lincoln, its first property acquisition since 2009
Capital & Regional is acquiring The Waterside for £24.8m, at a 7.68 per cent initial yield, from clients of PruPIM. The Waterside has approximately 120,000 sq ft of accommodation on two principal levels, located on a prime retail pitch in the centre of Lincoln. It is anchored by Primark, New Look, Top Shop and Oasis with a Zone A rental tone of £30-£65 and a current void level of 5 per cent .The weighted average unexpired lease term is 7.1 years.
Capital & Regional has already identified a number of asset management initiatives invluding unit reconfiguration and the conversion of current mall and circulation areas to revenue producing larger space units. There is also planning consent to introduce a Riverside family catering offer at the lower level.
It is planned that Waterside will form part of a new 50:50 joint venture between Capital & Regional and Karoo Investment Fund II, a Luxembourg investment fund.
Hugh Scott-Barrett, chief executive of Capital & Regional, said: "Waterside is a classic C&R centre where we can apply our revenue focussed retail management skills to create the right space and trading environment for retailers and deliver good returns for our shareholders
“The creation of the joint venture with Karoo is also an important step in providing us with further funding capacity for new deals , as well as providing us with a source of management fees and potential performance fees. We are actively looking at other similarly attractive opportunities."
