Legal & General Property has confirmed its acquisition of the Meadows shopping centre in Chelmsford, Essex.
The fund manager acquired the 150,000 sq ft mall from Lend Lease for £56.1m, reflecting a 7.7% net initial yield.
The Meadows shopping centre comprises 39 shops to retailers, such as Warehouse, Boots, Fat Face and Sportsworld, and is anchored by BHS and Wilkinson. There is also an eight-screen Odeon Cinema and a restaurant quarter.
The mall has an average unexpired lease term of over six years and 80% of the income is secured against established retailers.
The Meadows was acquired on behalf of LGP’s UK Property Income Fund, which, to date, has acquired assets totalling £260m, including Fremlin Walk shopping centre in Maidstone, Guildford business park in Guildford and the Co-op distribution centre in Andover.
Charlie Walker, fund manager of the UK Property Income Fund, said: “Against a background of increasingly limited debt available and further challenges facing retailers, there continues to be a growing polarisation in the UK shopping centre market. I fully expect there will continue to be a number of less attractive secondary shopping centre assets flooding the market, however, The Meadows, Chelmsford, is one of a very small handful of opportunities that provide the right combination of quality, size and location.”
Strutt & Parker advised Lend Lease; Jackson Criss acted for L&G.
annabel.dixon@estatesgazette.com
