Thornfield Properties is close to buying its first town-centre shopping scheme.
The developer has a conditional deal to buy the 61,000 (657,000 sq ft) Kingfisher Centre in Redditch for around £90m from Henderson Investors and Commercial Union. The sale will reflect an initial yield of 6.5%. The Leeds-based developer set up a joint venture with US investment bank Lehman Brothers last February to fund future development and investment: Redditch would be the ventures first big deal.
A spokesman for Thornfield Properties said: “Our strategies will be to continue edge-of-town and city-centre development, but also to look at more investment-led opportunities.”
Kingfisher Centre first went on the market through CB Hillier Parker in October 1997 for close to £100m. Its 160 shops, including Marks & Spencer, Alders, Bhs and Boots, represent 75% of the towns shopping floorspace.
Thornfield is also believed to have bid for the Grosvenor Centre in Northampton, but was beaten by Legal & General, which bought the scheme for close to £83m last week.
EGi 18/01/99
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