Legal & General Property, on behalf of its UK Property Income Fund, has confirmed its acquisition of Fremlin Walk shopping centre in Maidstone, Kent, for £92m.
LGP bought the 350,000 sq ft scheme from a joint venture between Europa Fund III, the pan-European fund managed by Europa Capital, and SCOOP AM.
Fremlin Walk is anchored by a 100,000 sq ft House of Fraser department store and has 48 shops let to tenants including H&M, Next, Zara and Boots. The average unexpired lease term is 11.3 years, with 97% of the income secured against national multiple retailers.
Over the past 18 months a number of new lettings have been agreed, including Laura Ashley, Pandora, Office Shoes and Prêt a Manger.
Rob Sim, partner of Europa Capital, said: “We have been very pleased with the success of investment in Fremlin Walk with our partner, SCOOP AM, as it has provided the fund with a strong income cashflow over the past 18 months. The offer from Legal & General Property persuaded us to make an early sale although there are still value enhancement opportunities in the property as we see further improvements in retailer demand.”
Charlie Walker, senior fund manager for the UK Property Income Fund, said: “Fremlin Walk shopping centre represents a good opportunity to acquire a core, multi-let, mid-sized shopping centre at an attractive yield. Purchased off-market, the deal is in line with the fund’s strategy of identifying well-located assets with a strong tenant base but still offering the potential for active management.”
CBRE advised Legal & General Property; DTZ advised Europa Capital and SCOOP AM.
annabel.dixon@estatesgazette.com
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