Capital & Regional has sold The Mall Camberley to Surrey Heath Borough Council for £86m – a net initial yield of 5.9%.
Plans for a £4.5m refurbishment of the shopping centre were approved in May.
The council later approached the developer about buying the 390,000 sq ft shopping centre, Capital & Regional said.
Surrey Heath will fund the purchase through local government finance including loans from the Public Works Loans Board.
Some £45.2m of proceeds will be used by Capital & Regional to repay debt secured on the property as part of The Mall’s loan facility.
The balance will be held for reinvestment in Capital & Regional’s shopping centre business, including the ongoing capex programme and acquisitions.
The Mall Camberley contributed approximately £1.8m to Capital & Regional’s profit for the six months ended 30 June 2016. The valuation at 30 June was £88.5m, representing a net initial yield of 6.15%.
Montagu Evans advised Surrey Heath on the deal; Capital & Regional were unadvised.
Councils have spend £382m on shopping centres in the past 12 months.
SHOPPING CENTRE PURCHASES
| Address | Date | Price (£) | Council |
|---|---|---|---|
| Lower Parade, Sutton Coldfield, West Midlands | 26/07/2016 | 10.4m | Birmingham City Council |
| Park Mall Shopping Centre, Ashford, Kent | 11/10/2015 | 823,000 | Ashford Borough Council |
| The Square, Beeston, Nottinghamshire | 23/05/2016 | 7.5m | Broxtowe Borough Council |
| Dolphin Square Shopping Centre, Weston-Super-Mare, Somerset | 19/12/2015 | 18.5m | Lancashire County Pension Fund |
| Manor Walks Shopping Centre, Cramlington, Northumberland | 19/07/2016 | 78m | Northumberland County Council |
| Merseyway Shopping Centre, Stockport, Greater Manchester | 14/04/2016 | 80m | Stockport Metropolitan Borough Council |
| Market Walk Shopping Centre, Newton Abbot, Devon | 12/02/2016 | 13m | Teignbridge District Council |
| Swan Shopping Centre, Leatherhead, Surrey | 10/05/2016 | 8m | Mole Valley District Council |
| Whitefriars Shopping Centre, Canterbury, Kent | 01/07/2016 | 80m | Canterbury City Council |
| The Mall Camberley, Camberley, Surrey | 31/10/2016 | 86m | Surrey Heath Borough Council |
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