Moorfield acquires EUR 125 mln Cornmil mall

UK-based Moorfield has acquired the Cornmill shopping centre in Darlington from the property management firm Investream for EUR 125,5 mln. The value reflects a net initial yield of 5.25%.

The 20,616 m² shopping mall, located in northeastern England, is anchored by a new 3,574 m² Primark retail store, which has contributed to a rise in footfall of about 19% in 2006. Other tenants include New Look, Bon Marche, Dorothy Perkins and TK Maxx as well as WHSmith, HMV and Clarks. The shopping centre provides close to 50 stores and a multi-storey car park with 402 parking spaces.

Negotiations on the transaction started in the last quarter of 2006, when turnover reached EUR 3.8 bn. According to property professionals at Savills Research, this was the strongest quarter of last year with the shopping centre’s total investment turnover at EUR 10.3 bn. However, the number of sales for the centre in 2006 dropped by EUR 2.9 bn on the previous year, even if remaining above the 10-year annual average of EUR 6 bn, UK magazine Property Week said.

'Yields have fallen to historic lows, however, we predict that strong bidding will continue at the prime end, albeit with fewer parties bidding. There could be pressure on some of the more secondary assets where aggressive prices have been paid,' Moonfield's head of shopping centre investment Nick Hart said.

The property investment and development group bought the shopping mall through its EUR 1.63 bn Moorfield RE Fund, which comprises the Ridings shopping centre in Wakefield, the Capitol shopping centre in Cardiff; a portfolio of WA Shearings hotels and student accommodation sites in Loughborough and Winchester. The vendor was advised by Savills and DTZ acted for the purchaser.