A client of Running Hare Investment Management has bought the Belfry Shopping Centre in Redhill for £18m.
The Surrey centre was put on the market in 2022 by a Northern Ireland-based private investor, believed to be Milestone Trust. Milestone Trust previously marketed the shopping centre in 2016, with an asking price of £43.5m.
M&S and Wilko anchor the scheme, which spans just under 250,000 sq ft and boasts an annual net rental income of £2.2m. The scheme has a WAULT of just over three and a half years to lease expiry, and two years and nine months to break.
The sale also includes two office blocks – Priory House and Tower House – comprising 16,125 sq ft, as well as four residential units located on Station Road.
The deal reflects a net initial yield of 11% and a low capital value of £78 per sq ft. Joint agents Knight Frank and Lambert Smith Hampton (Belfast) negotiated the sale.
Charlie Barke, partner at Knight Frank, said: “We were pleased to close out this sale early in the new year. This is the third asset we have sold to the clients of Running Hare and we hope it performs well for them.”
Keith Shiells, director at LSH, Belfast, said: “The sale of Belfry Shopping Centre generated strong levels of interest and highlights that investor appetite remains positive for shopping centre assets, underpinned by strong fundamentals.”
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