Paul White’s Frogmore is poised to make its first acquisition for its newly launched £1bn property fund.
The company is buying HSBC’s three remaining shopping centres in a circa £140m deal, reflecting a 5.75% initial yield.
Frogmore launched a new £1bn opportunity fund Frogmore Real Estate Partners – to invest in UK property earlier this month.
All new acquisitions will be placed into the new fund, although properties held in the existing £600m Frogmore Property Company will not change ownership.
HSBC put the centres, which include the 223,300 sq ft Belle Vale in Liverpool, the 165,000 sq ft Broadwalk in Knowle, Bristol, and the 264,363 sq ft Port Arcades in Ellesmere Port, up for sale in April in a bid to cash in on an investment starved market.
DTZ advised HSBC; Jones Lang LaSalle acted for Frogmore.
References: EGi News 23/06/06
