London & Associated Properties has confirmed it has exchanged contracts to sell its King Edward Court shopping centre in Windsor, Berkshire, to Scottish Widows Investment Properties for £104.7m – a 5.6% yield.
LAP said proceeds of the disposal will be used to further reduce its borrowings.
The group acquired the 215,000 sq ft mall in 2002 for £45m and invested a further £24m in the centre as part of an intensive asset management programme that created shops for retailers including Waitrose, Zara, H&M, Top Shop, and New Look, as well as a 113-room Travelodge.
King Edward Court now generates annual net rental income of £6.2m. The centre has a total of 35 shops, a supermarket, hotel and Windsor’s principal car park.
LAP chief executive John Heller said: “King Edward Court has been a strongly performing investment for us and we felt that, with increasing interest in shopping centres from investors, this was an ideal opportunity to realise a profit on the centre. The sale will enable us to further reduce borrowings as well as look for other investment opportunities.”
Strutt & Parker acted for SWIP; GCW and Lewis & Partners advised LAP.
annabel.dixon@estatesgazette.com
