(This story has been updated to include details of the investment syndicate)
A syndicate of private investors arranged by Running Hare Investment Management has exchanged to buy the Kingfisher Shopping Centre in Redditch in the heart of the West Midlands, CoStar News can reveal.
Kingfisher comprises virtually all of Redditch’s retail and leisure offer and extends to 1 million square feet in a mix of essential and convenience retail, leisure, fashion basics and community-focused uses. Anchor tenants include Primark, Next and a seven-screen Vue Cinema, while other occupiers include Boots, Wilko, The Range, Barclays Bank, Superdrug and TK Maxx.
There is also a repurposing opportunity at the vacant 82,000-square-foot former Debenhams. There are 2,374 car parking spaces.
It is unclear how much the syndicate is paying for the mall but market sources suggest it is a significant discount to the £50 million, reflecting a net initial yield of 10.25%, that Savills guided when it launched the sale last year.
The mall is owned by a bank and a private owner. C&R is asset manager for both.
As evidence of the changing value of leading UK shopping centres, Capital & Regional with its capital partner Oaktree Capital Management bought Kingfisher from Scottish Widows Investment Partnership for £130 million in 2012, reflecting a net initial yield of 8%.
The syndicate includes the Gluck family, which advised by asset manager Running Hare has been one of the busiest acquirers of UK malls in recent times having now bought four shopping centres in the past year.
In evidence of a pick up in transactional activity for UK malls, Capital & Regional this morning announced it was returning to the acquisitions trail to buy The Gyle Shopping Centre in Edinburgh for £40 million.