Invesco Real Estate is acquiring Queensgate Shopping Centre in the English cathedral town of Peterborough.

Invesco Real Estate is acquiring Queensgate Shopping Centre in the English cathedral town of Peterborough.

The London-based investment manager is paying £202 mln (€242 mln) to purchase the freehold of the shopping centre from a 50:50 joint venture between UK REIT Hammerson and Aviva Investors.

The net passing rent for Queensgate is £13 mln and the disposal is expected to complete in early 2014. The transaction is marginally below Hammerson's book value at June 2013.

Originally built in 1982, the 83,300 m² shopping centre has more than 110 stores and restaurants. Hammerson, in its capacity as the centre's asset manager, delivered a 5,500 m2 Primark store and an improved catering offer in 2012.

Hammerson will now recycle the capital into higher return opportunities in both the UK and France. Hammerson CEO
David Atkins said: 'This disposal brings further liquidity into the business and follows our recent successful $443 mln US private placement. 2014 will see major progress on our development projects and these additional funds will help us grow the business through our substantial development and refurbishment programme and selected acquisitions.'

Hammerson and Aviva Investors were advised by Nabarro, Eversheds and CBRE.