Pan-European investor Meyer Bergman has confirmed its acquisition of The Exchange shopping centre in Ilford, Essex, from Capital & Regional’s Mall fund for around £71m and an 8.2% net initial yield.
The 270,000 sq ft scheme comprises over 80 retail shops. Major tenants include TK Maxx, New Look, Debenhams and WH Smith.
Meyer Bergman said the transaction was in line with its strategy of acquiring well-located assets with significant upside potential through active asset management.
Meyer Bergman secured finance for the acquisition from Santander.
The group completed its purchase of a 50% stake in The Bentall Centre in Kingston, Surrey, for around £130m in March.
Markus Meijer, chief executive of Meyer Bergman, said: “The acquisition of The Exchange Centre supports our strategy of acquiring well located assets where we see potential for strong growth through active asset management.
“It also reflects our belief that there are still pockets of value to be found in the UK market, despite the recent increase in valuations. We hope to steadily improve and rejuvenate the centre in order to help widen its appeal, driving footfall and rental income growth.”
“This deal is our second acquisition of a Greater London shopping centre this year and we continue to look for further opportunities in the UK and Continental Europe, and hope to announce further transactions shortly.”
CBRE advised the Mall fund.
