TH Real Estate has sold its 50% stake in Whitefriars Shopping Centre to Canterbury City Council for £75m.
The deal to buy the full freehold and leaseholds was approved by an overwhelming majority of city councillors at a full council meeting on Thursday 4 January.
The purchase gives the council more control over the centre of Canterbury.
Mark Garmon-Jones, head of shopping centre investment at Savills, said: “We are delighted to have acted on the sale of this 50% stake in Whitefriars on behalf of TH Real Estate. In a shopping centre investment market where the best-quality assets are held in stakes, this deal continues the trend from 2017.”
Leader of Canterbury City Council Simon Cook added: “We thought very carefully about this once-in-a-generation opportunity to take control of one of the city’s key assets, which could just as easily have been bought by investors whose interests do not necessarily align with those of the district.
“While no investment is without its risks, buying 100% of Whitefriars will allow us to open up opportunities to shape the future of the city centre over the long term, with decisions taken by a council working on behalf of its residents. Retailers at Whitefriars are thriving and there is huge potential for growth, especially as it is an attractive destination for shoppers and tourists who want a first-class shopping experience. It is one of the top 100 shopping centres in the country.
“As councils come to rely less on the money given to them by central government, we need to find ways to pay for essential services. The income we generate from this deal is another step towards us becoming self-sufficient.”
In June 2016, the council bought a 50% stake in Whitefriars. As part of that arrangement, it was given first refusal to buy the remaining 50%.
The council’s chief executive, Colin Carmichael, added: “Taking full control of Whitefriars and its future plans means we will not need to liaise with anyone else when taking key decisions about the heart of the city centre. It also means it will be easier for a future council to sell the whole shopping centre or parts of it if the economic circumstances change.
“Our post-war predecessors made the far-sighted decision to buy land which allowed the council to develop what is now the retail heart of Canterbury, and we are happy to continue that ambition. By bringing the freehold and leasehold interests together, the market value of the shopping centre increases, to the benefit of the council and local people.”
Whitefriars is a modern, open-air shopping centre that has Fenwicks, Marks & Spencer, Next, Boots, Tesco and Primark stores among many others. Altogether, it has 474,000 sq ft of retail accommodation spread across 63 shops, including six large stores.
It comprises four different areas: Whitefriars Street, Gravel Walk, Marlowe Arcade and Rose Lane. Ownership includes a parade of four shops fronting St George’s Street, six shops at Clock Tower Square and a 530-space car park. There are five office tenants and 38 residential tenancies.
Knight Frank represented Canterbury City Council; Savills acted for TH Real Estate.
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