A raft of large-scale property players were this week lining up bids for a 50% stake in the £360m Southgate shopping centre development in Bath.
REITs British Land and Land Securities, pan-European investment manager Meyer Bergman, and funds Universities Superannuation Scheme and Oxford Properties are all understood to be eyeing Multi Developments’ share in the 414,000 sq ft mall.
The Netherlands-based developer, which this week had its long-running development agreement for a £300m shopping centre project in Wolverhampton torn up, is seeking around £150m for its holding in Southgate, reflecting a circa 5% yield.
Talks to buy a share in the scheme, part of which is already open, have been ongoing for more than six months.
Estates Gazette revealed last summer that Multi had been approached by several parties with proposals for a combined deal to buy a stake in Southgate in return for funding the 563,000 sq ft Wolverhampton development (19 June 2010, p47).
Southgate, which is co-owned by Aviva Investors, is scheduled for completion in November.
Last year Multi said it planned to move out of investment to refocus on town centre regeneration projects.
DTZ advises Multi.
annabel.dixon@estatesgazette.com
