Morecambe Arndale sold for £14m
NEWRIVER Retail has bought the Arndale Shopping Centre in Morecambe in a £14m deal.
It has also spent a further £5m on five high street assets in Rugby, Nuneaton, Spalding, Blackpool and Perth which are let to Boots, McDonalds, Halifax, Monsoon and Top Shop.
London-based NewRiver said the sites were last traded between 2005-07 for £40m. The identity of the vendor was not disclosed but the sale was described as a “distressed debt situation”.
Morecambe’s Arndale has 40 units with a total of 107,300 sq ft let to occupiers such as Poundland, Boots, Iceland, Argos, Travelodge, Halifax, and Greggs. In total, the portfolio comprises 141,000 sq ft and has an occupancy rate of 95%.
Property director Allan Lockhart said: “Following another highly active year for NewRiver, we are pleased to continue to deliver on our careful stock selection and active acquisition strategy by acquiring the Arndale Shopping Centre in Morecambe and five nationally located High Street assets at an attractive price reflecting a net initial yield of 9.75%.
“The Arndale Shopping Centre offers excellent value-enhancing opportunities having been impaired by a lack of investment for a number of years owing to the financial position of the previous owner. We are committed to improving the shopping centre with our plans to invest fresh capital and work closely with Lancaster City Council. We have identified a number of active asset management initiatives, including attracting new occupiers for an improved retail mix, a centre rebrand and refurbishment, together with improvements to the adjoining public realm, all of which will drive increased footfall and dwell time.”
Earlier this year NewRiver acquired 202 Marston’s pubs which it plans to convert into shops. Around 60 will be leased to Co-operative Food.
