Legal & General Property (LGP) has acquired Fremlin Walk Shopping Centre, Maidstone, from a joint venture between Europa Fund III, the pan-European fund managed by Europa Capital, and Scoop AM. The property was acquired for about £92 mln (EUR 110 mln).
Legal & General Property (LGP) has acquired Fremlin Walk Shopping Centre, Maidstone, from a joint venture between Europa Fund III, the pan-European fund managed by Europa Capital, and Scoop AM. The property was acquired for about £92 mln (EUR 110 mln).
LGP carried out the transaction on behalf of its UK Property Income Fund.
Situated in the centre of Maidstone, Kent, the modern, fashion-orientated, open-air shopping centre comprises 32,500 m2 of prime retail space and a 760 space car park. Anchored by a 9,300 m2 House of Fraser department store, the site comprises 48 retail units in total, let to a range of blue-chip tenants, including H&M, Next, Zara and Boots. The average unexpired lease term is 11.3 years with 97% of the income secured against national multiple retailers.
Rob Sim, partner of Europa Capital, said: 'We have been very pleased with the success of investment in Fremlin Walk with our partners, Scoop AM, as it has provided the Fund with a strong income cashflow over the past 18 months. The offer from Legal & General Property persuaded us to make an early sale although there are still value enhancement opportunities in the property as we see further improvements in retailer demand.'
CBRE advised Legal & General Property whilst Europa Capital and Scoop AM were advised by DTZ.
Europa Capital bought Fremlin Walk shopping centre for around £70 mln from Land Securities in a joint venture with asset manager Scoop AM in June 2009. The deal reflected a yield of between 8.5-8.75%.
