Land Securities announced yesterday (August 31, 2010) that it had exchanged contracts for the sale of the Stratford shopping center, 44 Broadway and Morgan House to the Catalyst European Property Fund LP for £91.55 mln. (approx. 110.79 mln.). The price represents a net initial yield to the purchaser of 7.25% for the shopping center and 44 Broadway properties, which are both fully let.
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The Stratford Centre benefits from a high footfall of an estimated 21 mln. per annum.
Located on Broadway in Stratford town center, opposite the new Olympic park, the 320,000-ft² (30,000-m²) shopping center is fully let to some 60 retailers including Boots, Sainsbury's and New Look.
Due to its town center location and direct connections with the bus and underground stations in Stratford, the center benefits from a high footfall of an estimated 21 million per annum.
The disposal also includes Morgan House, an adjoining 113,000-ft² vacant office building and future development site, at a price of £5 million.
Gary Sherwin, Head of Retail Investment for Land Securities, commented on the sale, "We are pleased with the sale which has benefited from the limited amount of stock currently available in the investment market. The funds from the sale will be channeled into other activities including more immediate development opportunities previously outlined by the Group."
Peter Kasch of Catalyst Capital, Managers of the Catalyst European Property Fund added, "The Stratford Centre fits within our fund requirements and is one of the best value retail investment opportunities we have seen this year. As well as a strong tenant line up, the center also has excellent development opportunities which will allow us to utilize our asset management and development expertise."
JLL acted for Land Securities and Lunson Mitchenall for the purchasers. Finance will be provided by pbb Deutsche Pfandbriefbank.
Source: Land Securities
Due to its town center location and direct connections with the bus and underground stations in Stratford, the center benefits from a high footfall of an estimated 21 million per annum.
The disposal also includes Morgan House, an adjoining 113,000-ft² vacant office building and future development site, at a price of £5 million.
Gary Sherwin, Head of Retail Investment for Land Securities, commented on the sale, "We are pleased with the sale which has benefited from the limited amount of stock currently available in the investment market. The funds from the sale will be channeled into other activities including more immediate development opportunities previously outlined by the Group."
Peter Kasch of Catalyst Capital, Managers of the Catalyst European Property Fund added, "The Stratford Centre fits within our fund requirements and is one of the best value retail investment opportunities we have seen this year. As well as a strong tenant line up, the center also has excellent development opportunities which will allow us to utilize our asset management and development expertise."
JLL acted for Land Securities and Lunson Mitchenall for the purchasers. Finance will be provided by pbb Deutsche Pfandbriefbank.
Source: Land Securities
