Haslemere and Hermes are to sell their Shires shopping centre in Leicester, in what would be the biggest single investment deal in the sector this year.
They are to begin marketing next week and are seeking offers of around £200m for the 46,500 sq m (500,000 sq ft) centre, which is anchored by Debenhams and Rackhams.
Haslemere bought the centre from Martin Myers Imry in 1997 for £163m. Haslemere subsequently sold 50% into the Consignia Pension Fund, which is managed by Hermes.
The pair have decided to sell the centre because it is too large to fit comfortably within their portfolios. But it is thought that Hermes would be willing to retain a small interest.
The news means that more than £325m-worth of shopping centres are set to change hands as bidders line up for CIN LaSalle Investment Managements £125m portfolio sale this week.
Sources close to the negotiations said that CINs agent Jones Lang LaSalle had drawn up a list of six to eight bidders and a final decision is to be announced shortly.
The list includes: REIT Asset Management, which last month lost out on the £235m GPE shopping centre portfolio; Charterhouse, which closed a new £200m shopping centre fund last year; a joint venture between GE Capital and Warner Estate Holdings; and Dawnay Day, which is also bidding on the £370m M&S portfolio.
Sellar Property Group also expressed interest but has not submitted a final bid.
The portfolio comprises the Milburn centre in Durham, The Galleries in Wigan, the Pavement in Chesterfield, the Swansgate centre in Wellingborough, and the County Square centre in Ashford. It represents an initial yield of 8-9%.
REIT partner Kevin McGrath said: “The centres provide good cash opportunities for active management. There is no such thing as a dry shopping centre.”
EGi News 05/10/01
