St. Modwen acquires Kirkby Town Centre

Published:  15 October, 2015

St. Modwen has exchanged contracts to acquire Kirkby Town Centre from Tesco for £35.8m, reflecting a net initial yield of 9 per cent on the main shopping centre.

The transaction will lead to a multi-million pound retail-led regeneration spearheaded by St. Modwen and carried out in partnership with Knowsley Metropolitan Borough Council. Together, they will work on plans to develop and expand the retail centre and complement the existing offer, as well as the provision of a significant new housing scheme on a 65 acre site situated close to the town centre. Kirkby Town Centre currently comprises 400,000 sq ft of retail and leisure space which is leased to 80 tenants including New Look and Home Bargains. St. Modwen’s in-house asset team will take over management of the centre in order to let vacant space and increase footfall. The acquisition builds on the developer’s existing retail expertise in the North West, which includes the successful Wythenshawe Town Centre scheme. The acquisition will also enable St. Modwen to continue its extensive development programme in Merseyside, with current projects including the Project Jennifer regeneration scheme at Great Homer Street in Liverpool, Skelmersdale Town Centre and Stonebridge Park Knowsley. The leader of Knowsley Council, Cllr Andy Moorhead, said: “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.” Steven Knowles, regional director of St. Modwen, added: “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.” Colliers International acted for St. Modwen.


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