The Columbus UK Real Estate Fund, advised by Schroders' Columbus Capital Management, and the Chester Properties Investment Partnership have joined forces to acquire the Brandon shopping centre in Motherwell, UK. Although the price of the acquisition was not disclosed, market sources say that Cala Properties sold the scheme at a £30 mln (EUR 35 mln) loss. The company paid £65 mln to buy the complex back in 2007.

The Columbus UK Real Estate Fund, advised by Schroders' Columbus Capital Management, and the Chester Properties Investment Partnership have joined forces to acquire the Brandon shopping centre in Motherwell, UK. Although the price of the acquisition was not disclosed, market sources say that Cala Properties sold the scheme at a £30 mln (EUR 35 mln) loss. The company paid £65 mln to buy the complex back in 2007.

The centre located adjacent to a new Asda superstore provides 350,000 sq ft (32,500 m2) of retail floorspace arranged in 91 units with anchor tenants including Primark, Wilkinson, Peacocks, Poundland, New Look, Dorothy Perkins and Boots. Rents have a long average unexpired lease term in excess of 14 years.

The centre forms the prime retailing pitch in Motherwell and planning permission has been secured to reconfigure the former Asda supermarket unit (40,000 sq ft) into three large units, one of which has already been pre let, and the sub division works are expected to commence in Q3 2010. Montagu Evans and Douglas Stevens have been appointed joint letting agents.

'This is the first acquisition for our new fund and we are delighted to be working with Chester again', said Joe Froud, managing partner of Columbus Capital Management. 'We are optimistic about the prospects for value and convenience retailing and are targeting similar centres throughout the UK.'

In previous years, Chester and Columbus teamed up to acquire the Vicarage Field shopping centre, Barking, East London.

Tom Tyler, Chester fund director commented: 'Sensible prevailing rental levels mean the scheme is not over rented and enable us to offer attractive and sustainable trading opportunities to new retailers.' Montagu Evans and Douglas Stevens & Co acted for Chester Properties. GVA Grimley acted for Cala Properties.

Chester Properties is a privately-owned, UK-based investment and development company, which owns and manages over commercial property across the office, industrial and retail sectors throughout the UK.

Earlier this year, Schroders raised over £80 mln of equity from more than 10 institutional investors for its Columbus real estate fund which is expected to raise a further £170 mln at subsequent closings over the coming months. The fund will use leverage of up to 50% loan to value giving a post leverage portfolio of around £500 mln.