Scottish-based, Halladale Group Plc and Citigroup Property Investors, the real estate investment arm of Citigroup Inc, announces that its UK property fund - CPI Retail Active Management Programme (CReAM) has acquired the Grays Shopping Centre (Grays), Essex, for Â£32.1 million, reflecting a net initial yield of 6.5 per cent.
The centre, acquired from GE Capital and Chainbow, comprises 200,000 sq ft of retail space with an adjoining 800 space multi-story car park situated in the town centre. Tenants include WH Smith, New Look, Iceland and Wimpey.
Chase & Partners acted for CReAM and the vendor was advised by Donaldsons.
This is CReAMÂ´s third acquisition to date and brings total assets under management to circa. Â£70 million. CReAM has an initial spending capacity of up to Â£300 million and will operate for six years.
David Lockhart, Chief Executive of Halladale commented: "The FundÂ´s investment strategy is firmly on track. This acquisition provides an opportunity for Halladale to apply its entrepreneurial asset management skills to create value."
Roger Orf, Head of European Investments for Citigroup Property Investors commented:
"This acquisition further confirms our belief in the market opportunity within this sector."