Benson Elliot Capital Management is in talks to buy the Fishergate shopping centre in Preston.
The private equity real estate investor is understood to be eyeing the 340,000 sq ft mall in an off-market deal for circa £40m – a mid-7% yield.
Fishergate is owned by a joint venture between Lloyds Banking Group and London & Associated Properties, the small listed property company run by Michael and John Heller.
The mall is one of four schemes held in the Agora Shopping Centre Fund, which was previously part of a 50:50 joint venture between Warner Estate and Uberior, the private equity arm of HBOS, now part of Lloyds.
Last summer, LAP bought Warner’s stake for a nominal £1 as well as the management contract. Lloyds retained its 50% stake in the portfolio.
The other malls are the Cavern Walks in Liverpool, Market Place in Bolton and Middleton shopping centre near Manchester.
The potential acquisition follows Benson Elliot’s purchase of the £500m Arcadia development in Ealing, W5, last year. It is understood to have paid circa £37m for the 4.2-acre site.
annabel.dixon@estatesgazette.com
