Capital & Regional JV buys Kingfisher in Redditch

Published:  01 May, 2012

Million-sq ft mall bought for £130m in partnership with Oaktree Capital Management

Capital & Regional has formed a joint venture with Oaktree Capital Management to purchase The Kingfisher Shopping Centre in Redditch. The centre is being acquired for £130m, representing an 8 per cent net initial yield, from clients of Scottish Widows Investment Partnership.

Kingfisher is a dominant sub regional mall, occupying a 27 acre site and extends to approx. 1 million sq ft of retail accommodation. This is supported by 2,800 car parking spaces, an integrated bus station and an adjacent rail station. Anchor retailers include Debenhams, M&S, Primark, Next, Arcadia and TK Maxx. An Apollo multi screen cinema provides a leisure focus.

The Centre produces a current net income of £11 million pa. Within the scheme, Zone A rental values range from £65 to £75 per sq ft and the current occupancy including strategic voids is 95.9 per cent.

C&R says it has established demand from both retail & leisure operators who are either not currently represented in Redditch or who wish to reformat their existing stores. C&R's asset management plan identifies opportunities to satisfy that demand and to reposition the centre in the minds of shoppers and retailers alike, by building on the existing footfall of almost 200,000 per week.

Hugh Scott-Barrett, chief executive of Capital & Regional said: "This is an exciting acquisition for Capital & Regional which is consistent with our strategic focus on UK retail, and dominant, community shopping centres in particular.
Kingfisher is a classic C&R centre sharing many of the investment and retail characteristics of The Mall Fund's core assets. Delivery of our business pIan will generate attractive returns which will be enhanced by asset and property management fees."

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