Meyer Bergman buys second London retail asset

Meyer Bergman has acquired the Exchange Shopping Centre, Ilford from the Mall Fund for around £71 mln (EUR 86 mln). The investment volume reflects a net initial yield in excess of 8.2%.

PropertyEU reported in March that the company was in talks with ghe Mall fund to acquire the centre, which has 73 stores and 1,200 parking spaces.
Attracting over 11 million visitors per year, the Exchange Shopping Centre is a key retail destination forming a major part of Ilford’s high street. The transaction follows the £130 mln acquisition in March of 50% of the Bentall Centre in Kingston.

Meyer Bergman is the investment platform founded by CEO Markus Meijer, who earlier worked for MAB Group, Goldman Sachs Whitehall Funds and Hines Interests Limited Partnership.

In a reaction Meijer said: 'The acquisition of the Exchange Centre supports our strategy of acquiring well-located assets where we see potential for strong growth through active asset management. It also reflects our belief that there are still pockets of value to be found in the UK market, despite the recent increase in valuations. We hope to steadily improve and rejuvenate the centre in order to help widen its appeal, driving footfall and rental income growth.'

Meyer Bergman has identified a number of possible asset management initiatives for the centre. 'This deal is our second acquisition of a Greater London shopping centre this year and we continue to look for further opportunities in the UK and Continental Europe, and hope to announce further transactions shortly,' Meijer added.

Meyer Bergman secured finance for the acquisition from Santander.