St Modwen Properties and Salhia Real Estate are in talks with Basingstoke council over plans for a major redevelopment of The Malls shopping centre.
The joint venture, known as Key Property Investments, has just purchased the headlease of the 1970s-built, 290,000 sq ft centre from Possfund Custodian Trustees for £29.9m, a 6.6% yield.
Basingstoke & Dean council owns a 99-year underlease of the centre, which is anchored by Sainsbury’s, Allders, Wilkinsons, WH Smith and Boots.
Proposals could include demolishing The Malls to make way for a new-build project or a multi-million-pound refurbishment.
Paul Arnold, senior development surveyor at St Modwen, said: “We’re seriously considering building other levels we could certainly go higher. We’ve done initial concept drawings and are in talks with the tenants.”
KPI was represented by Hartnell Taylor Cook, while CBRE acted for Possfund.
References: EGi News 10/12/04
