Halladale buys freehold interest in shopping centre for 28.6m (UK)

Halladale Group plc said it bought the freehold interest in the Queen Street Shopping Centre, Darlington, from St Martins Property Investment Ltd for £28.6m.

The price reflects a net initial yield of 5.57%, the company said. Queen Street, the principal shopping centre in Darlington, totals 75,000 sq ft including 31 retail units in an enclosed mall.

The site also includes Regent House, a 25,000 sq ft office building let to the Secretary of State for the Environment on a lease expiring in 2012, and is adjacent to a proposed new 260,000 sq ft shopping centre.

The acquisition has been made with co-investment partner Anglo Irish UK Property Fund, taking the total assets of its partnership to around £100m. Halladale, which will manage the property, said it has invested 30% of the equity, with Anglo Irish Fund investing the remaining.

Source: Freeman

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