Legal & General is in exclusive talks to buy the Meadows shopping centre in Chelmsford, Essex.
The fund manager is thought to be under offer to buy the 151,000 sq ft centre for around £57m – a circa 7.6% yield – from Australian developer Lend Lease and LV Asset Management.
As revealed by EGi, the shopping centre was brought to the market in May for £59.5m – a 7% net initial yield.
The centre is anchored by Bhs and Wilkinson. Other tenants include Warehouse, Ann Summers, Boots and Past Times.
The joint venture had been in discussions to develop a 4-acre site adjacent to the shopping centre. However, its development agreement with Chelmsford council came to an end in March 2010.
The proposed 1.5m sq ft retail-led scheme included 800,000 sq ft of shops, around 1,000 homes, 60,000 sq ft of restaurants and cafes and 1,200 parking spaces.
Strutt & Parker is advising the jv; Jackson Criss is advising L&G.
annabel.dixon@estatesgazette.com
