Europa Capital is set to pocket a £30m profit before costs on the sale of the Fremlin Walk shopping centre in
Aviva Investors is buying the 350,000 sq ft shopping centre for £100m – a 6.5% yield. It is anchored by a 100,000 sq ft House of Fraser store.
The European fund manager bought the centre last June from Land Securities for £70m – an 8.75% yield.
The REIT – which agreed to forward-fund the Centros Miller-developed scheme, built on the site of the former Fremlins Brewery, in 2002 – originally sought £100m when it was brought to the market in November 2008.
LandSec originally planned to develop the scheme itself.
One agent said: “This deal is symptomatic of where we are in the market at the moment. It shows how quickly the market has turned from last year, when Land Securities sold the scheme and there were hardly any other deals transacted.”
He added: “I suspect the pricing now is still below the historical peak, but it is a fair deal in this market and marks a return to more normal market activity.”
Strutt & Parker is advising Aviva Investors; DTZ is advising Europa Capital.
