Listed retail landlord Capital & Regional has emerged as the frontrunner to buy the Marlowes shopping centre in Hemel Hempstead, Hertfordshire, from Standard Life.
The £40m deal – which reflects an 8% yield – is the latest step in the dramatic turnaround of Capital & Regional, which came close to the brink during the financial crisis.
The 271,950 sq ft centre has numerous imminent lease expiries and fits into Capital & Regional’s strategy of focusing on intensive asset-management opportunities.
C&R has £40m of cash on its balance sheet and £12m of undrawn bank facilities that it has previously said it would use for the acquisition of “beneath the radar” assets.
The group has undergone a restructuring over the past seven years which saw it refinance a securitised loan, sell off its non-core German assets, convert to REIT status, and buy out its Mall Fund joint partner, Aviva.
The conclusion of the restructuring helped to power the company to a £57m pretax profit in the first half of this year.
Strutt & Parker advised vendor Standard Life on the deal.
