Scottish Widows Investment Partnership (SWIP) has exchanged contracts to buy the King Edward Court shopping centre in the English town of Windsor.

Scottish Widows Investment Partnership (SWIP) has exchanged contracts to buy the King Edward Court shopping centre in the English town of Windsor.

The cash consideration of £105 mln (€124 mln) reflects a net initial yield of 5.6%.

SWIP, which is being taken over by Aberdeen Asset Management, acted on behalf of SWIP Property Trust.

Kerri Hunter, deputy fund manager of the SWIP Property Trust, commented: 'This is a high-quality prime property in a very tight retailing location with strong income growth potential. The purchase of this asset is firmly in line with our strategy to increase our direct property exposure by investing in core, quality property with attractive income characteristics.'

The vendor, London & Associated Properties (LAP), said the proceeds of the disposal would be used to further reduce the company's borrowings.

LAP acquired King Edward Court for £45 mln in 2002. Since then the company has invested a further £24 mln in the centre as part of an intensive asset management programme that created major units for tenants including Waitrose, Zara, H&M, Top Shop, and New Look as well as a 113-room Travelodge hotel.

Today, King Edward Court generates annual net rental income of £6.2 mln from a range of tenants including Fenwick, Next, Timberland and Cotswold Outdoor. In total the centre has 35 retail units, a supermarket, hotel and Windsor's principal car park.