Town Centre Securities has sold a regional shopping centre in Greater Manchester because it believes that the newly-opened Trafford Centre will damage its prospects. The Spinning Gate Shopping Centre in Leigh has been bought by Atmore Group for £11.325m.
According to the Town Centre Securities: “The decision to sell the centre was taken after a review of its prospects following the recent opening of the nearby Trafford Centre, which is likely to restrict growth and create an uncertain local retail environment.”
The 7,100 sq m (76,500 sq ft) centre is let to tenants including Argos, Dorothy Perkins, Radio Rentals and Granada and generates over £1.05m pa. The purchase price reflects an initial yield of around 9%.
Town Centre Securities bought the development from the receivers to the centre’s developer in 1996 and has seen its value rise by 30%. The scheme is currently fully let.
Atmore Group’s managing director Alan Snowball said that the fact that the majority of the tenants have fifteen years left on their leases means that the scheme will provide a secure income. “We are contemplating a number of improvements to the centre including an extension of approximately 12,000 sq ft,” he added. The acquisition is Atmore’s largest to date.
TCS was represented by Crowson Bellman Gill Adams and Legat Owen acted for Atmore. Legat Owen has also been retained as managing agent and development consultant.
EGi News 26/10/98
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