Meyer Bergman links up with Canadians to buy UK mall

Meyer Bergman is teaming up with two major Canadian pension funds to acquire the Bradford shopping centre project from retail property giant Westfield. Financial details were not disclosed. However, market rumours indicate a price of £200 mln (EUR 248 mln).

In a statement on Friday, Westfield announced agreements to develop and sell its interest in the EUR 325 mln mall development to the London-based investment manager in partnership with the Healthcare of Ontario Pension Plan and another co-investor in Meyer Bergman's second fund, Meyer Bergman European Retail Partners Fund II.

On completion of the transaction, Meyer Bergman will become the owner of the Bradford site. Meyer Bergman will appoint Westfield to do the development, design, construction and leasing roles for the new shopping centre. Westfield will also be appointed as property manager for the centre following completion of the development.

The £260 mln (EUR 325 mln) Bradford development will comprise a 550,000 sq ft (51,000 m2) retail centre including over 70 shops and places to dine and will be anchored by Debenhams, Marks & Spencer and Next, which will occupy 35.6% of the project area.

'The agreements with Meyer Bergman are a significant step forward for the development of the shopping centre for the city of Bradford,' said Duncan Bower, Westfield Director of Development.

Meyer Bergman said Bradford represents a 'compelling' retail opportunity as a city that has not offered retailers or consumers a good quality modern retail solution in over 20 years. Moreover, with a catchment area of 1.4 million potential shoppers, it is the largest retail market in the UK without a department store.

The transaction is subject to the commencement of the Bradford development, which is expected to occur in the second half of 2013.