Richard Haywood has bought the Cardiff leisure park that sent Welsh property company Brunswick Holdings into receivership four years ago.
Haywood’s Guinevere Holdings has teamed up with David Kirsch’s Channel Hotels & Properties to buy the 135,000 sq ft Millennium Plaza from Delancey, gazumping Prudential Property Investment Managers, which had the scheme under offer for six months.
Haywood worked closely with Brunswick and had a profitshare agreement with the Cardiff company when it developed the park in a 50/50 jv with Delancey. But in September 2001, spiralling costs led to Brunswick’s collapse.
Delancey then bought Brunswick’s stake. It put the scheme on the market last August through Savills for £23m, a 7.5% initial yield, but will now retain a minority stake.
A source said: “There was momentum in Haywood’s bid. He came up with a non-refundable deposit pretty damn quick and has paid a bit more than PruPIM.”
“It’s good to be back,” said Haywood. “It’s a great building and with a little bit of tweaking should do very well.”
More than £100m of leisure stock has changed hands this year and agents are predicting that more than £700m will be traded by the year end. Last year £750m of parks were sold.
Gallagher Developments, advised by Savills and Stockford Staunton, has sold its 250,000 sq ft Leisure Exchange in Bradford to Rock Capital for £41m, a 6.25% yield. DTZ advised Rock Capital.
References: EGi News 01/04/05
