Hammerson’s acquisition of a 50% interest in Peterborough’s Queensgate centre means that the joint venture could eventually own one of the UK’s biggest shopping centres.
Hammerson said on Thursday that it had bought the stake in the 800,000 sq ft centre from owner Morley Fund Management for £156m, a 5.32% yield.
The partners are making a second attempt to produce an acceptable scheme for a 646,000 sq ft extension to Queensgate, featuring a new shopping street, leisure, residential and public space.
They have been preferred developers on the adjacent North Westgate site since 2003.
The scheme would increase the space at Queensgate to 1.5m sq ft.
The previous scheme was slated by CABE as a “standard mall-style development” based on “North American models now seen as undesirable”.
The joint venture still has to negotiate or apply for the CPO of land owned by Hawksworth Securities, which has rival plans for North Westgate.
It has already submitted a planning application, despite failing to win council backing, but a decision cannot be reached until the company draws up an environmental statement.
Hawksworth chairman Peter Breach said: “Ours is a mixed-use scheme. It’s up to the powers that be to decide between them.”
References: EGi News 21/11/05
