MEPC has bought its third retail centre in Derby in two years. The purchase of the 4,660 sq m (50,159) sq ft Audley Centre means that MEPC holds 30% of the city’s entire 41,062 sq m (442,000 sq ft) of retail floorspace. The developer is considering options to redevelop and link the schemes.
The centre’s vendor, Scottish Widows, sold the freehold for £11.5m. The deal reflects an initial yield of 8%. The centre, on the corner of East Street and St Peters Street, comprises 22 units and is anchored by Marks & Spencer. The leases expire in three to four years.
Ted Johnson, MEPC Director, said: “We are delighted with the purchase. The property is linked to our existing holdings in Derby…and offers opportunities to redevelop.” The company already owns the 31,214 sq m (336,000 sq ft) Eagle Centre and the 9,848 sq m (106,000 sq ft) Castlefields Main shopping centre. Previously, MEPC had drawn up plans for an additional 3,252 sq m (35,000 sq ft) of retail space between the adjacent Eagle and Castlefield Main centres. The Audley Centre deal follows an agreement in February between MEPC, Norwest Holst and the council on the development of the 3.64 ha (9 acre) Cock Pitt site. Initial plans include a multi-storey car park and shops, with a footbridge to the Eagle Centre
Knight Frank acted for MEPC and Jones Lang Wootton advised Scottish Widows on the sale of the Audley Centre.
EGi News 29/05/96
