St Modwen has exchanged contacts to buy Kirkby Town Centre in Liverpool from Tesco for £35.8m, reflecting a net initial yield of 9%.
The transaction will result in a multi-million pound, retail-led regeneration of the shopping centre to be led by St Modwen and carried out in partnership with Knowsley metropolitan borough council.
Kirkby Town Centre comprises 400,000 sq ft of retail and leisure space that is leased to 80 tenants including New Look and Home Bargains.
Estates Gazette revealed last month that St Modwen was under offer to buy the shopping centre.
Tesco acquired the site in 2008 for £65m and planned to anchor a £400m redevelopment there. Its plans included a 100,000 sq ft Tesco Extra, a 200,000 sq ft retail park and a new stadium for Everton Football Club.
However, the scheme was among 49 development sites Tesco said it would not be building following the discovery of a £250m black hole in its accounts.
The leader of Knowsley council, Andy Moorhead, said: “We were very disappointed that our previous private sector partner was not able to bring forward the retail offer, which the residents of Kirkby deserve.”
Colliers International acted for St Modwen.
