by Stephen Dark
Imry Merchant Developers, in partnership with the Church Commissioners, have exchanged contracts for the freehold of the Gracechurch Centre, West Midlands, for £60m. The vendors are Friends’ Provident Life Office, who acquired the centre when they took over UK Provident Institution’s portfolio.
The centre was built in 1974 and has 375,000 sq ft of retail space and two office blocks totalling 37,000 sq ft, with a rent roll of some £2.7m pa. Retail tenants include Marks & Spencer, BHS and Beatties, while Digital Equipment and the Manpower Services Commission are among the office occupants.
The purchasers, who are jointly working on £200m worth of projects under the Shenfield Partnership banner, have formed a new vehicle, the Cromlix Partnership, to undertake a major refurbishment of the highly reversionary centre. Details have yet to be announced.
According to David Doubble of Friends’ Provident, the sale was made as part of a continuing rationalisation of the UKPI portfolio. “Our intention was to diversify away from single retail investments to unit shops and retail warehouse investments. Instead of putting money into refurbishing the centre, we decided to finance some office developments in the existing portfolio and acquire some small retail sites, rather than having our only shopping exposure in Sutton Coldfield.”
Chesterton advised the purchasers, while Hillier Parker acted for the vendors.
