One of the largest assets within Carphone Warehouse founder Davis Ross’ property empire is being brought to the market.
Jackson Square shopping centre in Bishop’s Stortford, Hertfordshire, has been earmarked for sale at £58m – a 6.25% yield.
The 250,000 sq ft mall is one of more than 30 properties, comprising shopping centres, high street blocks and leisure assets, which are held in the Kandahar Group, a joint venture between Ross and Morgan Stanley Real Estate.
The sale of Jackson Square is part of a review of the group that Ross and Lloyds Banking Group, lender to Kandahar, are undertaking. Further individual assets are widely expected to be sold or placed into separate joint ventures.
Kandahar, which was set up in 2003, has breached covenants on its £247m debt facility with Lloyds.
It sold its biggest asset, the 425,000 sq ft Drake Circus shopping centre in Plymouth, Devon, to British Land in January for £240m in an attempt to reduce its debt pile.
Fund management group Catalyst Capital’s deal to buy into Kandahar and lead a restructuring of its £190m portfolio collapsed last month after Lloyds Banking Group sought a higher price for the assets. It is now understood to be valued by the bank at around £230m.
A source said: “The portfolio doesn’t hang together logically. Jackson Square (in Bishop Stortford) is prime and the biggest in the portfolio. The buyer of Jackson Square in Bishop Stortford won’t buy St Mary’s Place in Market Harborough or Tower Ramparts in Ipswich.”
Jones Lang LaSalle is advising.
annabel.dixon@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
