Birmingham shopping centre acquired in £70m deal
A BIRMINGHAM shopping centre has been sold in a deal which values the facility at almost £70m.
Europa Capital and Sovereign Centros have acquired One Stop shopping centre and retail park in Perry Barr from Standard Life Investments.
The centre, close to Birmingham city centre, sits on a site of 28 acres was constructed in 1990 and sold to Standard Life on completion.
The 380,000 sq ft centre currently has around 13% of its units vacant and one of the first steps being taken by the new owners will be to secure new tenants.
The acquisition represents Europa Capital’s second joint venture with Sovereign Centros, following the acquisition of 735,000 sq ft Corby town centre from Helical Bar in March 2015.
The acquisition price of £69m reflects an initial yield of 7%. The centre comprises two elements; a shopping centre anchored by Asda and a retail park. Key retailers include Marks & Spencer, Nike, Argos, Wilko, Boots, New Look, Sports Direct, Arcadia, Home Bargains and Poundland.
Hugo Black, of Europa Capital said: “We are delighted to have completed our second transaction with Sovereign Centros. We believe that Perry Barr offers Europa Fund V the opportunity to continue to enhance leasing performance of the asset and benefit from high cash on cash returns in a sector that is attracting increasing interest from domestic and international institutional investors.”
Chris Geaves, of Sovereign Centros, said: “Sovereign Centros and Europa Capital are delighted to have acquired from Standard Life. The asset sits in an interesting area within Birmingham which is planned for significant change. We look forward to taking our plans for the asset forward.”
Europa Capital and Sovereign Centros were represented by Savills and Standard Life Investors by Strutt & Parker.
