Capital & Regional is set to make a 25% profit on the sale of Westway Cross Shopping Park.
It is understood that the developer is in negotiations with Co-operative Insurance Society to sell the 11,148 sq m (120,000 sq ft) Greenford scheme for close to £50m, reflecting an initial yield of around 6%.
Sears sold the scheme to C&R in February last year for £33.5m, reflecting an equivalent yield of 7.5%. But a property source said that he could not see how CIS would be able to make a return on the park if bought for that price.
“It’s a pretty keen yield and very equity intensive because all of the tenants are on base rents with substantial turnovers.”
CIS and Capital & Regional would not comment on the negotiations.
This week it has also emerged that Pillar is close to exchanging contracts for part of the Beckton Gasworks site in E6. It is understood that Pillar is forward-funding Castlemore Securities retail scheme for £100m. The group is thought to be paying a very keen yield – close to 5%.
Pillar managing director Valentine Beresford said Castlemore would develop the scheme.
“We fund the site development and complete the purchase when tenants have been signed. We hope to be on site next year and the scheme built by 2002,” he said.
Castlemore’s slice of the 50ha (125 acres) site has open A1 planning consent for 37,160 sq m (400,000 sq ft) of retail warehousing, including a food superstore and 9,290 sq m (100,000 sq ft) of employment use.
Harvey Spack Field advised Castlemore and FPDSavills acted for Pillar.
EGi News 22/09/00
