Halladale Group Plc and Citigroup Property Investors, the real estate investment arm of Citigroup, Inc. announce the acquisition for CPI's Growth and Income Strategy of the Crown Glass Shopping Centre in Nailsea, Somerset for approx. €36 million (£26 mln). The price reflects a net initial yield of 5.5%.
Crown Glass, located in Nailsea, a market town in the West Country that benefits from good communications links to Bristol and Weston-Super-Mare, was built in the early 1970s and extended in 2001 and 2004. It is the principal shopping centre in Nailsea and is situated at the heart of the town center.
The shopping center consists of 88,568 ft² of single level retail accommodation and 41,727 ft² of offices situated around a pedestrianised central square. The property also includes 36 residential units together with a 250 space car park. The shopping center is anchored by a number of national retailers including Boots, Iceland, Superdrug, Peacocks, New Look and the Post Office.
Jackson Criss acted for Halladale and CPI, and the vendor, Nailsea Town Centre Ltd, was advised by Jones Lang La Salle and Lewis & Partners.
David Lockhart, Chief Executive of Halladale, said: "Crown Glass offers significant scope for improvement both in terms of refreshing the building and improving the tenant mix. Halladale has a proven record of enhancing retail properties through its entrepreneurial approach to property development and asset management and Crown Glass is ideally suited to benefit from Halladale's expertise to create significant value to both the overall project and shareholders."
Stuart Webster, CIO, Core Plus Strategies, CPI, said: "Crown Glass represents an attractive investment for CPI despite the low prime yields currently prevalent in the UK investment market as it affords the opportunity for value creation through a series of distinct asset management and development initiatives. With Halladale's and CPI's extensive experience in enhancing value, I am very confident that this investment will be a success."