Sovereign Land and Ares Asset Management are preparing to sell Lion Walk shopping centre in Colchester, Essex.
The pair are seeking bids of £85m – a 5.25% yield.
CBRE has been appointed to market the property.
The potential sale follows a refurbishment and extension of the 205,000 sq ft shopping centre.
Sovereign and Ares originally paid £56m – a 7.5% yield – for the centre in 2013, buying it from LaSalle Investment Management’s UK Ventures fund.
The pair then invested in the adjacent Red Lion Yard for £1m, spending £600,000 refurbishing and developing the site – which links Colchester High Street and Lion Walk – into a boutique retail parade let to independent shops and restaurants.
Lion Walk is home to 40 shops, including a new 56,000 sq ft Primark as its anchor. The budget retailer will pay an annual rent of £750,000 and will replace BHS.
The shopping centre investment market is on track for a record year. So far, some £1.6bn of malls have been traded and a further £2.2bn are on the market, according to Savills.
It predicts that year-end figures will reach £6.5bn.
