A joint venture between Warner Estate and Baltic Properties has bought the Six Acre Shopping Centre in Sale, Greater Manchester from Peel Holdings for £15m. The price reflects a net initial yield of 11.5%.
The centre includes 9,290 sq m (100,000 sq ft) of shops, 5,574 sq m (60,000 sq ft) of offices, a market hall and a multi-storey car park. Tenants including WH Smith, Boots, Nationwide Building Society and Wilkinsons generate a rental of £1.8m pa.
The deal is Baltic and Warner’s first joint buy. According to Warner’s finance director David Veaser the joint venture has no plans for any further acquisitions at the moment.
Warner plans to improve the quality of the centre. One option is to reconfigure the centre to accommodate larger shop units.
The joint venture is paying for the centre with an external loan and the balance will be made up by the two companies.
EGi News 04/09/97
