Residential and mixed-use developer Native Land has emerged as the frontrunner to acquire Cambridge’s Grafton shopping centre from Legal & General, as a major city centre redevelopment opportunity.
Savills was appointed to sell the 500,000 sq ft centre earlier this year. It has been marketed with scope for a £300m GDV life sciences campus, including some 80,000 sq ft of life sciences and laboratory space. The centre includes an eight-screen Vue Cinema and sits on 12 acres.
The developer is thought to have put the centre under offer for around £65m. Market sources have indicated that the sellers initially sought offers of about £80m.
Native Land declined to comment on the deal, but a spokesman said: “A key part of our acquisitions strategy is to look for assets in fundamentally strong UK towns and cities which offer the possibility for repositioning or redevelopment.
“We look at opportunities frequently, but don’t comment on individual sites we may or may not have considered.”
News of the deal has underlined wider industry hopes that the retail investment market is picking up the pace.
Jonathan De Mello, equity partner at CWM Retail, said: “This deal is yet another indicator that the investment markets are really starting to gain momentum. As with many recent deals this is ostensibly a retail acquisition, but with a view to extensive repurposing. This is undoubtedly the best way to realise value – and ensure a profitable onward sale – in today’s market.”
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