Capital & Regional and Oaktree Capital Management have exchanged contracts to buy the Kingfisher Shopping Centre in Redditch, Worcestershire from clients of Scottish Widows Investment Partnership for £130m, representing a net initial yield of around 8%..
The acquisition is being made through a new joint venture vehicle formed by C&R and Oaktree.
Oaktree will provide 80% of the equity with C&R providing 20%. Royal Bank of Scotland and Santander will provide the remainder of the funding.
The 1m sq ft shopping centre, which occupies a 27-acre site, features tenants including Debenhams, M&S, Primark and Next.
Charlie Barke, head of town centre retail investment at Cushman & Wakefield, which acted jointly for SWIP, said: “The SWIP funds will now be looking to reinvest the capital into smaller assets, where each fund can gain 100% ownership.”
Jackson Criss also advised SWIP; Strutt & Parker advised C&R and Oaktree.
daniel.cunningham@estatesgazette.com
