Halladale Group Plc and Citigroup Property Investors announced that its UK property fund CPI Retail Active Management Programme ("CReAM") has acquired a portfolio, comprising three shopping centers in England for a total consideration of £44 million.
The retail portfolio, totalling approximately 235,000 ft², comprises a mix of part covered and open schemes and is let to around 80 tenants on a rent of £2.74 million. Thamesgate Shopping Centre in Gravesend, Kent, has been acquired for £22 million, Waterbourne Walk Shopping Centre in Leighton Buzzard, Bedfordshire, for £11.4 million and Wellington Way Shopping Centre in Waterlooville, Hampshire, for £10.6 million. The price reflects a net initial yield of 5.95%.
The majority of the portfolio is held as freehold with a small element of leasehold property at Leighton Buzzard. Along with the retail space, Gravesend Shopping Centre incorporates 10,000 ft² of offices and a five-storey car park and there is a small element of residential property at Wellington Way.
Senior debt was provided by Deutsche Bank. CReAM was advised by Jackson Criss, Joiner Cummings and Lunson Mitchenall. The vendors, Edinburgh House, were advised by Franc Warwick.
This is CReAM's fourth acquisition to date and brings total assets in the fund under management to circa. £114 million. CReAM will operate for six to eight years from its launch in October 2004.
David Lockhart, Chief Executive of Halladale said: "This is an excellent portfolio acquisition for Halladale. It further exemplifies how we can significantly enhance value for our shareholders by continuing to identify shopping centers which have seen little asset management over the years and which therefore offer good opportunities for us to increase values and generate profit through our entrepreneurial asset management and development skills."