Lloyds Banking Group’s proposed sale of a £90m shopping centre fund part-owned by Warner Estate has collapsed.
Asset manager Addington Capital had been in talks to buy the Grange and Pyraminds shopping centre in Birkenhead, Merseyside, for close to £80m – a circa 9% yield – since July.
However, the group, which is backed by AEW Europe and Tristan Capital Partners, has now walked away from the deal. Lloyds has now taken the property back to underbidders.
The mall is held within the Agora Max fund, a joint venture between Warner and HBOS, now part of Lloyds.
The 470,000 sq ft Grange shopping centre and the adjacent 143,000 sq ft Pyramids mall were brought to the market in May for around £83m after talks to restructure a £63m loan failed.
The loan, which had been in special servicing since 2009, matured in March.
The breakdown of the potential purchase follows the trio’s acquisition of the Sapphire portfolio for £145m – a 7.75% yield – in March.
Lloyds declined to comment.
Savills is advising on the Birkenhead sale.
