Praxis has confirmed its purchase of Garden Square shopping centre in Letchworth for £14m.
Praxis completed its purchase of the 175,700 sq ft shopping centre from distressed sellers Vale Retail and Tyburn Lane Private Equity off a 10% initial yield.
They paid £37.5m with debt from Anglo Irish Bank for the mall in 2007.
It is let to retailers including Argos, Boots, Dorothy Perkins and Costa Coffee.
Last September, Praxis bought the 150,000 sq ft Crossgate shopping centre in Leeds for £29.5m – an 8.5% yield – from Donegal Place Investments.
Chris Beckerman, director and head of retail at Praxis, said: “We are very pleased to have acquired another dominant shopping centre with abundant opportunity to add value with active management and targeted capital investment. Garden Square has been badly neglected in recent years and there is a lot to do, but, fundamentally it is a good scheme and we have a clear plan to turn it around.
“We have substantial cash reserves and will make further acquisitions where we can find value.”
Coady Supple advised Praxis; Jones Lang LaSalle acted for the seller.
annabel.dixon@estatesgazette.com
