REAL ESTATE - Prudential Property Investments (Prupim) has purchased the Wellgate Shopping Centre in Dundee from HBG Properties, it announced.

The €123m transaction was on behalf of the M&G Property Portfolio, it said.

The retail centre was acquired by HBG – the UK property development subsidiary of listed Dutch building group BAM – in June 2003. Since then, it has invested in a major refurbishment of the centre and its integrated 600-space multi-storey car park, Prupim said.

“Following HBG’s skillful refurbishment, the Wellgate Shopping Centre has also been transformed. It now provides a very attractive and successful focus for mass market and more value-focused retailing in Dundee,” Prupim’s co-fund manager Fiona Rowley commented.

“With rents in the region of €45 to €120 per square foot Zone A, a number of added value opportunities, and a site with outline planning consent for a 5000m2 extension, we think this should prove to be an excellent acquisition for the fund,” Rowley added.

According to Prupim, HBG’ refurbishment includes a re-clad façade, replacement of lifts and escalator, modernisation and re-branding of signage throughout the centre. HBG also replaced the heating and air conditioning plant and reconfigured the retail units to meet current occupier demands for larger units.

In addition, HBG secured lettings with annual rents of over €2.2m to many new tenants, has provided significant relocations within the centre, and has created a new food court, Prupim said.

The agents handling the sale were Smith Cole Wright and Churston Heard on behalf of HBG Properties. Cushman & Wakefield advised Prupim.

A BAM spokesman indicated that the sale has been concluded with a profit. He however declined to provide details. The profits will be added to the company’s fourth quarter’s figures.