M&G Real Estate, formerly known as PRUPIM, and Hermes Real Estate Investment Management have confirmed the completion of the ownership swap between thecentre:mk in Milton Keynes and the Friary centre in Guildford.
Under the terms of the deal, M&G Real Estate has acquired the Friary centre, and associated holdings in North Street, Guildford. It is thought to have paid around £150m. Hermes will contribute a balancing payment as part of the deal.
M&G Real Estate has sold its 36% stake in thecentre:mk – thought to be for around £190m – to Hermes. It will bring the mall fully under Hermes’s control.
Alex Jeffrey, chief executive, M&G Real Estate, said: “We have extensive experience of developing complicated retail schemes and are committed to continuing discussions with Guildford borough council, and other key stakeholders, to further enhance the Friary centre and the surrounding North Street site.”
Chris Taylor, chief executive at Hermes, added: “We are delighted to have been able to complete this property swap; such transactions frequently make strategic sense for both parties but rarely occur as they are notoriously difficult to actually implement. We have been long-term owners in Milton Keynes and are excited at the opportunities to continue to enhance the centre and deliver sustained long-term growth through our active management and active engagement with our occupiers, shoppers and council alike.”
Cushman & Wakefield advised Hermes; Lunson Mitchenall advised Prupim.
annabel.dixon@estatesgazette.com
