London-listed property investor Capital & Regional and fund manager Oaktree Capital Management have acquired the Kingfisher Shopping Centre in the English town of Redditch for £130 mln (EUR 160 mln). Scottish Widows Investment Partnership (SWIP) sold the asset on behalf of clients.
London-listed property investor Capital & Regional and fund manager Oaktree Capital Management have acquired the Kingfisher Shopping Centre in the English town of Redditch for £130 mln (EUR 160 mln). Scottish Widows Investment Partnership (SWIP) sold the asset on behalf of clients.
The investment volume reflects a 8% net initial yield.
The centre produces a current net income of £11 mln per annum and the occupancy rate, including strategic voids, is 95.9%. The weighted unexpired lease term is nine years and 11 months.
Capital & Regional carried out the acquisition in a joint venture with one of Oaktree's funds. The acquisition is funded by investments of £10.6 mln and £42.4 mln from Capital & Regional and Oaktree respectively, representing equity shares of 20% and 80%. The remaining funding will be provided by the Royal Bank of Scotland and Spanish lender Santander through a five-year, £86 mln debt facility.
Kingfisher is a dominant sub-regional mall, comprising 92,000 m2 of retail space on an 11-hectare site. The property also includes 2,800 car parking spaces, an integrated bus station and an adjacent rail station. Anchor retailers include Debenhams, M&S, Primark, Next, Arcadia and TK Maxx.
Capital & Regional invests in shopping centres and out of town retail parks. The company acts as property and asset manager for the Mall and Junction funds, in which it is a co-investor. Along with Area Property Partners, Capital & Regional hold a 50% interest in a German retail property portfolio which is managed by Garigal Asset Management.
Los Angeles-headquartered Oaktree is a global investment management firm focused on alternative markets, with $75 bn (EUR 56 bn) in assets under management at end-December 2011.
