Highcross Group’s joint venture with Lehman Brothers has sold the Broadwalk Shopping Centre in Bristol to one of HSBC’s shopping centre funds for a total of £22m.
HSBC Shopping Centre Fund III bought the 180,000 sq ft centre, which provides 40 retail units and is anchored by Somerfield, Iceland and Gala Leisure. The centre also provides some ancillary office space and leisure facilities.
The centre generates an annual rental income of £1.36m, equating to a net initial yield of 6.2%. Highcross and Lehman paid £17.5m for the centre in March last year.
Highcross Managing Director, Peter Gubb, commented: “Through careful and active management we have added substantial value to the property since it was purchased in March 2003, including obtaining planning permission to extend the retail area. We are actively seeking to reinvest in investments offering similar management opportunities.”
Highcross and Lehman were represented by Hark Retail. DTZ Debenham Tie Leung acted for the purchaser.