CNC Properties has bought The Lanes Shopping Centre in Sutton Coldfield, Birmingham, in an off the market deal for about £2.5m.
The Centre was introduced to CNC by Credit Lyonnais who are bankers to both CNC and the vendors, a group of private investors.
The passing rent on the scheme is £325,000. The sale represents an initial yield of 13% and a yield of 14.6% on the estimated rental value of £366,000.
The 19 retail tenants include Comet, Boots and NatWest Bank. CNC plans a refurbishment programme which will be agreed with the tenants and implemented later in 1998.
The acquisition is in line with CNC’s strategy of maintaining a portfolio balanced by sector and geography and of acquiring high yielding properties with further potential for adding value.
Colin Walker-Robson, Finance Director, CNC Properties PLC, said: “This transaction is another excellent example of CNC’s ability to match and fulfil both banking and vendors’ needs in a negotiated off market transaction. This transaction will not only enhance earnings but provide ample opportunity for capital growth following the planned refurbishment programme.”
The Centre has been valued for CNC at £2.6m.
EGi News 17/03/98
