Delancey increases presence in regeneration sector

London-based specialist investment advisor Delancey has acquired Miller Developments' 50% interest in UK urban regeneration and mixed-use property developer Centros Miller. Miller and Delancey have been joint venture partners in Centros Miller since 1999. Delancey will now rebrand the company as 'Centros'.

Among the many retail-led town centre projects the company is currently involved in is the GBP 500 mln (EUR 673 mln ) Northern Quarter scheme in Portsmouth, which will create a mixed-use scheme of over 92,000 m² and be anchored by John Lewis and M&S. Other projects are Lancaster’s 45,000 m² Castle View scheme and Arc, the 24,619 m² redevelopment of Bury St Edmunds’ former cattle market which will provide a Debenhams and an additional 35 units when it opens in 2009.

The company's overall development programme is worth more than EUR 1.2 bn in the regeneration of over 279,000 m² of land across the UK. Centros expects to announce its appointment as development manager on Arnotts' EUR 1.2 bn mixed-use scheme in Dublin.

'This transaction provides Delancey's investors with full exposure to a number of transformational projects which we have supported since their inception. We are delighted to have agreed this transaction with Miller and look forward to continuing to develop and support Centros in the future,'commented Delancey chairman and chief executive Jamie Ritblat.

Phil Miller, chief executive of Miller Developments, added: 'Centros Miller is a great business with a bright future but we now wish to develop our own retail business in the UK with a wider remit on all things retail. The proceeds from this major disposal will further enhance our ability to take advantage of attractive market conditions.'

Richard Wise, chief executive of Centros, commented: 'This transaction will transform Centros. To have the full backing of Delancey at a time when equity is king is fantastic. We couldn't be better placed for 2008 and beyond. I would like to thank Miller for its support over many years.'