Halladale Group plc said it bought the freehold interest in the Queen Street Shopping Centre, Darlington, from St Martins Property Investment Ltd for Â£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 Â£100m. Halladale, which will manage the property, said it has invested 30% of the equity, with Anglo Irish Fund investing the remaining.