Criterion Capital has sold a shopping centre in London to AEW Europe as part of its focus on the UK residential build-to-rent sector.
Criterion Capital has sold a shopping centre in London to AEW Europe as part of its focus on the UK residential build-to-rent sector.
AEW acquired the leasehold interest in St Nicholas Centre in the London borough of Sutton for £71.6 mln (€98 mln), representing a yield of 6.49%.
The 434,504 sq ft (40,400 m2) shopping centre offers 67 retail units alongside a multi-screen cinema and is anchored by Debenhams, New Look, Next, Primark and Sports Direct. It generates an annual rent roll of £6.9 mln with a weighted average unexpired lease term of 5.83 years.
'With the current appetite for investment in shopping centres, it was an opportune time for us to go to the market,' said Karl Elliot, head of shopping centres at London-based real estate asset manager Criterion Capital. 'A competitive bidding process followed and we have achieved a price that unlocks further resource to be deployed on our growing build to rent residential development pipeline.'
Criterion Capital currently has a pipeline of some 5,000 build-to-rent units to be delivered by the end of 2016 and operated under Miflats management platform.
Criterion Capital was advised by Savills while the purchaser, AEW, was represented by Strutt & Parker.
