South African-backed investor buys 2 UK malls for €249m

Mauritian-based New Frontier Properties has entered the UK retail market by acquiring two shopping centres for £179 mln (€249 mln).

Fund manager F&C REIT was the vendor of the Cleveland Centre and Coopers Square in Middlesbrough and Burton-on-Trent. The corporate transaction reflected a yield of 7%.

The Cleveland Centre is located in the heart of the north-eastern English town of Middlesbrough. The asset spans 40,000 m2 and is home to over 60 stores. It is anchored by Boots, Top Shop, New Look and H&M and includes 550 car parking spaces at roof level.

Coopers Square is the regionally dominant shopping centre in Burton-upon-Trent and totals 38,000 m2. It is anchored by Marks & Spencer, Primark, Boots, New Look, BHS and River Island and includes 800 car parking spaces.

South African backing
New Frontier Properties is a special purpose vehicle with a listing on the Stock Exchange of Mauritius (SEM) and the Johannesburg Stock Exchange (JSE).

The company is backed by South African REIT Rebosis Property Fund, which owns a controlling stake in the company. Rebosis floated in 2011 and was established by Billion Group, the South African property development and investment company founded by businessman Sisa Ngebulana.

Mike Riley, CEO of New Frontier Properties, commented: 'The acquisition of The Cleveland Centre and Coopers Square marks New Frontier Properties' start of becoming a major UK shopping investor. These shopping centres are indicative of the sort of assets we are considering; strong, regionally dominant shopping centres with significant potential for improvement. We hope to announce further purchases in due course.'

New Frontier has appointed London-based investor and asset manager, Waypoint Asset Management which was founded by Mike Riley and Nick Gregory, to manage the centres. The company has earmarked up to £300 mln to invest in UK shopping centres in the next year through their retained advisors, Lunson Mitchenall and Coady Supple.

Lunson Mitchenall and Coady Supple advised New Frontier Properties and Waypoint Asset Management on the purchase of The Cleveland Centre and Coopers Square. CBRE advised F&C REIT.