£36m deal to unlock regeneration scheme

A SITE in Kirkby, Merseyside, once ear-marked as the new home for Everton Football Club, is set to be bought by developer St Modwen for £35.8m.

St Modwen has exchanged contracts to buy Kirkby Town Centre from supermarket group Tesco, and says its purchase will unlock a “multi-million pound” retail-led regeneration of the town, in partnership with Knowsley Council.

The deal, due to complete in the coming weeks, represents as net inital yield of 9% on the main shopping centre. Kirby Town Centre comprises 400,000 of retail and leisure space, leased to 80 tenants including New Look and Home Bargains.

St Modwen’s in house asset team will take over the management of the centre in order to let vacant space and increase footfall.

Steven Knowles, regional director of St Modwen, said: “Our investment in Kirkby Town Centre will bring about vital regeneration to revive the town centre and with the provision of a large new housing scheme will contribute to the Council’s commitment to provide 450 homes per year for the next 15 years.

“St Modwen continues to make strategic acquisitions and add value through our income producing assets in the region, which in turn supports future employment opportunities in Merseyside. With the upturn in commercial development, the site is a good fit with our existing North West portfolio.”

Cllr Andy Moorhead, leader of Knowsley Council, added: “We were very disappointed that our previous private sector partner was not able to bring forward the retail offer which the residents of Kirkby deserve.

“We have been working hard to secure a replacement developer who is keen to invest in the town and we look forward to working with St. Modwen on their plans to complete the regeneration of Kirkby town centre and greatly enhance the retail offer for the benefit of our residents and businesses.”

Colliers International acted for St Modwen.

A Tesco spokesperson added: We’re very pleased to have exchanged contracts for the sale of our land in Kirkby to St. Modwen. We’ve worked constructively with Knowsley Council throughout and, following the recent transformation of the town centre, we look forward to further investment being delivered for the local community.”

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