The syndicated property investment moved a little closer this week with the setting up by Abaco Investments, the former Greencoat Properties, of a closed-end group to invest in shopping centres.
Abaco has pulled together British & Commonwealth Shipping, Canada Life Assurance, London & Manchester Assurance and Sun Life Assurance of Canada to put up to £14.5m into the new Speciality Shops.
The cash is in the form of equity and loan capital, and will be drawn up to the £14.5m limit as it is required.
The idea is to invest in speciality shopping centres under the management of Abaco’s property subsidiary Mount Provincial Developments. The concept is well tried in North America and consists of creating intensively managed shopping malls with a variety and balance of retail uses.
Abaco says the speciality centres contrast starkly with the traditional UK High Street or town centre scheme where large multiple stores trade from the prime locations. “Speciality centres are expected to grow at a faster rate, in rental and capital value terms, than these other, more established, property investments.”
Two centres have been identified and are being acquired at a total cost of £4.8m. They are the Berkeley Shopping Centre in Queens Road, Clifton, Bristol, and the Courtyard in Cheltenham.
These are being put into the company by some of the founding shareholders. The Bristol development was owned jointly by Canada Life and Abaco and and Cheltenham scheme was developed by Canada Life with local firms Bob Chick Ltd and Aspen Property Investment.
When the new company has fully invested its capital and established a successful trading record, it is likely to seek to raise further expansion capital through a quotation on the London stock market.
