Capital Shopping Centres (CSC) will pay around £275m for Lend Leases Chapelfield shopping centre development site in Norwich.
CSC, a subsidiary of Liberty International, said this morning it had committed to pay Lend Lease £40m up front when work on the 510,000 sq ft (47,379 sq m) scheme begins in July.
It will pay the balance, subject to the centre being 70% let, within two years of completion- which is expected in 2005.
CSC estimates paying a total of £275m based on estimated annual income of around £18m for the scheme.
Lend Lease will design, construct and develop Chapelfield as well as take responsibility for its letting.
The Chapelfield retail development is the largest-ever single investment in Norwich and involves the regeneration of a former factory building and surrounding land.
The 510,000 sq ft mixed-use project will be anchored by a House of Fraser department store and includes another ten large stores and over 80 shops, restaurants and cafes.
CSC has also agreed to buy the residential element of the project, comprising 115 flats, at an estimated cost of £12m.
John Abel, managing director of CSC, said: “There is a scarcity in the United Kingdom of high quality retail assets which meet our requirements.”
” Chapelfield represents an extremely well planned and designed development, which is located in a strong regional catchment area.
” This is an excellent opportunity for Capital Shopping Centres to add to our current portfolio of prime retail centres in the UK.”
Chapelfield in Norwich will form part of CSC’s UK portfolio of ten centres, which includes Lakeside in Thurrock, MetroCentre in Gateshead and Braehead in Glasgow.
Lend Lease Europe director David Hutton said: “Chapelfield is our fifth major retail centre development in Europe, and will further demonstrate our ability to deliver innovative retail centres and to regenerate city centres.
” Retail in the UK remains a core focus of Lend Lease and we will continue to work alongside leading property companies and investors in creating, delivering and managing large retail assets.”
EGi News 14/05/02
