Development Securities in joint venture with Patron Capital today announces the sale of the Phones 4u Arena in Manchester to a Mansford Real Estate LLP Fund for £82.1 million (approx. €97 million). The sale of the Arena will generate in excess of £10 million (approx. €11.8 million) of cash to Development Securities before finalizing with Patron Capital our promote entitlements.
The Phones 4u arena, formerly known as the Manchester Evening News Arena, was acquired by Development Securities and Patron Capital in 2010 for £62.2 million (approx. €73.53 million). Development Securities owned the minority share of the 70:30 joint venture partnership and was retained to asset manage the property. During ownership, Development Securities undertook a number of asset enhancement initiatives to drive rental income and capital value. These included a re-gear of the operator lease with SMG Europe, increasing advertising income, refurbishing the vacant office space within the complex and most recently, successfully retendering the naming rights deal for the arena.
Operated by SMG Europe, the Phones 4u Arena is the second most popular indoor arena in the world after the 02 Arena. In addition to the 21,000 seater arena, the complex includes 128,000 ft² (approx. 11891 m²) of office space and a multi-storey car park.
Michael Marx, Chief Executive of Development Securities said: "The Phones 4u Arena has been a strong performer for us and our asset management and enhancement strategies have added significant value. We are pleased to have secured the sale of the Arena, three years since acquisition and in line with our business plan. The cash returned through this disposal further strengthens the Company balance sheet and follows the recent concluding deal at PaddingtonCentral which realized £12.1 million (approx. €14.3 million) of cash and the sale of our Broughton residential land holding earlier in the year which also released £11.4 million (approx. €13.48 million of cash."
Source: Development securities