Capital Shopping Centres (CSC) has agreed to pay Shell Pension Trust £45m for a further 15% interest in Eldon Square shopping centre in Newcastle-upon-Tyne.
The acquisition brings CSC’s stake in the shopping centre to 45%. Shell retains a 15% interest and the remaining 40% is owned by the City of Newcastle.
CSC is a wholly owned subsidiary of Liberty International.
CSC, Shell and the City of Newcastle have been partners in Eldon Square since its development in the early 1970s. Final approvals have now been granted for three major extensions to the centre that will increase its retail space to 468,000 sq ft.
The plans also provide for a bus station and new mall at the northern end of Eldon Square, a revitalised Old Eldon Square with additional shops and restaurants, and improvements to the public realm.
The Southern Gateway scheme will include a 175,000 sq ft department store and large-format shops.
Construction of the first phase is planned to start in 2005.
References: EGi News 14/12/04
