Benson Elliot, the UK-based private equity real estate fund manager, has acquired the Mander Centre in Wolverhampton city center from Mander Investments Ltd. for £59 million (€75 mln), in a continuation of its expansive UK regional investment programme. The shopping center currently produces a net initial yield of 6.5%, which is set to increase to 8.5 – 9.0% following the completion of a comprehensive reconfiguration programme.
With a combined area of approximately 620,000 ft² (57.599 m²), the Mander Centre is the dominant in-town shopping offer in Wolverhampton, comprising a two-level covered scheme of 103 retail units, with c. 55,000 ft² (5.109 m²) of ancillary offices and a 530 space, multi-storey car park. The Center serves an extensive primary retail catchment (430,000 people) and generates exceptional footfall (17 million p.a.).
In June, planning permission was granted to reconfigure the Mander Centre to deliver a 90,000 ft² (8.361 m²) new build anchor store, together with 9 larger format units, all arranged around a new atrium and a re-constructed retail mall.
Marc Mogull, Benson Elliot Managing Partner, said: “Over the past few years, we’ve been pursuing a strong and successful UK regional investment programme, having identified early on the growth story now unfolding in regions like the West Midlands. In-town shopping centres – many suffering from under-investment – have been an important component of that programme.“
Peter Cornforth, Director of Retail at Benson Elliot, said: “The City’s embarked on a £1 bln plus regeneration programme to deliver significant improvements to both the built environment and the range of facilities on offer to visitors, shoppers, workers and residents. We’re confident that a revitalised Mander can make a key contribution to Wolverhampton’s exciting future.”
Jackson Criss advised Benson Elliot, while Cushman & Wakefield acted for Mander Investments Ltd.
Source: Benson Elliot