Exeter City Council's deal to take ownership of the Guildhall Shopping Centre has scooped a 2023 Costar Impact Award, after judges praised its plans to revamp the asset and work towards addressing a housing shortage.
According to CoStar data, the council acquired the large retail hub in May 2022 for £41.5 million, representing a yield of 6.75%. The site comprises a net internal area of 307,000 square feet and houses brands such as Primark, Brewdog and Sainsbury's.
Guildhall Shopping Centre combines a modern shopping centre with traditional architecture and underwent renovation works in 2016. It was previously owned by Aviva and is located in the centre of the city.
Judges said the deal, which works out at £135.18 per square feet, was a big statement from the council in showing that "retail still has a future" in the city centre and attracting investment to the South West.
About the project: The popular shopping centre will continue as a key retail and food and drink destination for Exeter, with the council agreeing to invest in improvements.
In the longer term, it has been reported that the site could include some residential housing alongside the retail units and restaurants. But the council has ruled out the development of purpose-build student accommodation.
What the judges said: Ytzen van der Werf, programme leader for MSc Real Estate Finance and Investment at the University of the West of England, said: "This acquisition by Exeter Council stands out because it is not about achieving the lowest yield or highest capital value in the area, but it aims to give back control of the Guildhall shopping centre to the public.
"Whilst one could debate whether this is the most effective use of public money, the council will likely have a decent return from its investment for the foreseeable future, after which the redevelopment of the centre could contribute to solving the housing need in Exeter."
They made it happen: Charlie Barke, retail capital markets partner at Knight Frank, David Willis, capital markets partner at Knight Frank, Lizzie Mason, senior surveyor company, also at Knight Frank, and Nick Sewell, executive director at CBRE.