Threadneedle Property Investments is understood to be the front-runner to buy the 21,000-seat arena, which is owned by GE Real Estate and Capital & Regional, in a 70:30 joint venture. The £60m sale price reflects a 7.5% yield.
Legal & General, PRUPIM and Moorfield are also believed to have bid.
Threadneedle – which last month limited inflows to its open-ended institutional property funds because of the weight of money trying to enter the sector – has become one of the most active institutions. Over the past month, it has spent more than £160m on real estate investments.
One source said: “It’s quite interesting that three out of the four final bidders were institutions. There is an element of a punt here – the income is by no means a certainty. However, it looks quite good value and is a big lump of real estate in a decent location. It is also one of the most successful arenas in the world – not a bad accreditation.”
Christopher Dee is advising GE and C&R; Savills is acting for Threadneedle.
C&R’s and Aviva Investors’ Mall Fund is close to selling shopping centres in Aberdeen and Preston for around £130m, a blended yield of 8%. Rockspring Property Investment Managers is under offer to buy the 220,000 sq ft Aberdeen Mall, while Orchard Street Investment Management, advised by Knight Frank, is in talks to buy the 270,000 sq ft Preston Mall.
CB Richard Ellis is advising the Mall.
annabel.dixon@estatesgazette.com
