News

GE gains from Haslemere break-up

News

Samantha McClary

13 November 2004

Selling shopping centres separately will net higher returns from retail portfolio says GE Capital

GE Capital’s Haslemere portfolio of shopping centres is set to be split between four separate investors and sold for prices that could net the fund manager £20m profit.

A GE Haslemere JV bought the five retail centres in June 2003 for £230m. GE then bought out Haslemere’s interest for £202m in April 2004. It is thought that separate sales should net GE £250m.

Premier Property Group, which is understood to have initially bid for the entire portfolio in August, is poised to take two of the sites.

The company has submitted offers for the 285,245 sq ft Four Seasons in Mansfield and 557,002 sq ft Middleton Grange in Hartlepool.

Asif Aziz’s Golfrate is to buy the 95,003 sq ft St Nicholas Centre in Sutton, and two separate private Irish investors have put in offers for the 125,000 sq ft Crossgates in Leeds and the 200,000 sq ft Mercat Centre in Kirkcaldy.

Crossgates is understood to be under offer for about £45m, while the Mercat Centre is under offer for just less than £40m.

A source said: “GE Capital decided to sell the centres separately because the market is paying a premium for individual lots, but it’s often good to group them together initially so the market is aware they are coming from one source.”

Parties that lost out in the bidding include CIT, which is understood to have wanted to take up to four of the properties. Eaton House and Hermes also looked at several centres, Vale Retail looked at one, and London & Associated was eyeing the Four Seasons in Mansfield.

Jones Lang LaSalle is advising GE Capital.

Drake Circus returns to the market

P&O’s 650,000 sq ft Drake Circus shopping centre development in Plymouth is back on the market after last month’s withdrawal of interest by Scottish Widows Investment Partnerships.

P&O had hoped to resurrect its deal with SWIP but has just put the centre back on the market for £200m, which represents a 6% yield.

Hammerson, Capital Shopping Centres, The Mall, Westfield and Centros Miller are all expected to show interest.

The scheme involves the demolition of the existing retail centre to create a traditional two-level centre of about 40 shops, anchored by Marks & Spencer and Allders.

Cushman & Wakefield Healey & Baker and Lunson Mitchenall are joint funding agents for the scheme.

Selling shopping centres separately will net higher returns from retail portfolio says GE Capital GE Capital’s Haslemere portfolio of shopping centres is set to be split between four separate investors and sold for prices that could net the fund manager £20m profit. A GE Haslemere JV bought the five retail centres in June 2003 for £230m. GE then bought out Haslemere’s interest for £202m in April 2004. It is thought that separate sales should net GE £250m. Premier Property Group, which is understood to have initially bid for the entire portfolio in August, is poised to take two of the sites. The company has submitted offers for the 285,245 sq ft Four Seasons in Mansfield and 557,002 sq ft Middleton Grange in Hartlepool. Asif Aziz’s Golfrate is to buy the 95,003 sq ft St Nicholas Centre in Sutton, and two separate private Irish investors have put in offers for the 125,000 sq ft Crossgates in Leeds and the 200,000 sq ft Mercat Centre in Kirkcaldy. Crossgates is understood to be under offer for about £45m, while the Mercat Centre is under offer for just less than £40m. A source said: “GE Capital decided to sell the centres separately because the market is paying a premium for individual lots, but it’s often good to group them together initially so the market is aware they are coming from one source.” Parties that lost out in the bidding include CIT, which is understood to have wanted to take up to four of the properties. Eaton House and Hermes also looked at several centres, Vale Retail looked at one, and London & Associated was eyeing the Four Seasons in Mansfield. Jones Lang LaSalle is advising GE Capital. Drake Circus returns to the market P&O’s 650,000 sq ft Drake Circus shopping centre development in Plymouth is back on the market after last month’s withdrawal of interest by Scottish Widows Investment Partnerships. P&O had hoped to resurrect its deal with SWIP but has just put the centre back on the market for £200m, which represents a 6% yield. Hammerson, Capital Shopping Centres, The Mall, Westfield and Centros Miller are all expected to show interest. The scheme involves the demolition of the existing retail centre to create a traditional two-level centre of about 40 shops, anchored by Marks & Spencer and Allders. Cushman & Wakefield Healey & Baker and Lunson Mitchenall are joint funding agents for the scheme.