Thornfield Properties has brought one of the country’s biggest shopping centres to
the market.
In the largest investment property deal to come up this year, Lehman Brothers-backed Thornfield has instructed Franc Warwick to market the 1.3m sq ft (120,770 sq m) Kingfisher Shopping Centre in Redditch for £215m, a 6% initial yield.
Thornfield bought the centre for £95m in 1999. Since then, it has added almost 1m sq ft in a series of extensions, secured an 80,000 sq ft (7,432 sq m) Debenhams store and increased the number of shops to around 200.
Last November, Thornfield prelet anchor stores in the last phase of the extension to Next and Sports Centre. Other tenants in the centre include Marks & Spencer, Allders, Bhs, H&M, River Island, New Look, HMV, Clarks, Boots, JJB Sports and TK Maxx.
A source close to the company said: “Thornfield has effectively redeveloped the whole of the town centre. Lehmans and Thornfield will feel that now the development is all but done, the time is right to sell.
“It is rare for something this big to come out and they are encouraged by the fact that the appetite for shopping centres is still very strong.”
Last year saw a record number of shopping centres changing hands. More than £200m worth of centres has already changed hands this year, and a number of smaller ones are on the market.
Some investment agents said the yield for the Kingfisher centre looked keen. The sellers are guaranteeing the rent on over 20 empty shops, which brings the yield down.
Franc Warwick declined to comment.
Meanwhile, Catalyst Capital is believed to be close to selling the Walsall shopping centre. Sources said Chester Properties was in talks to buy the centre for around £49m. Jones Lang LaSalle is advising Catalyst.
References: EGi News 01/03/04
