Halladale Group Plc and Citigroup Property Investors announces that its UK property fund - CPI Retail Active Management Programme ("CReAM") has acquired a portfolio comprising five shopping centres in England for a total consideration of £78.1 million.
This acquisition is CReAM's fifth and final and brings total assets in the fund under management to over £200 million. The fund is now fully invested, having reached closure within 9 months.
The acquisition of the retail portfolio totals approximately 500,000 ft² and comprises Locks Heath Shopping Centre in Fareham, Hampshire, Martlets Shopping Centre in Burgess Hill, West Sussex, Central Square Shopping Centre in Erdington, Birmingham, Bramley Shopping Centre in Leeds, and Forum Shopping Centre in Wallsend, Newcastle-Upon-Tyne.
The premises are being bought on a freehold basis except Burgess Hill, which is a long leasehold interest. Total annual rent is approximately £4.9 million and the purchase price reflects a net initial yield of 5.9 per cent.
Barclays provided senior debt. Jackson Criss and Ashurst advised CReAM. The vendors, Lathe Investments, were advised by BCM and Forsters.
David Lockhart, Chief Executive of Halladale commented: "This is another excellent acquisition for Halladale providing further opportunities to exercise our entrepreneurial asset management and development expertise. CReAM has proved a tremendous partnership between Halladale and CPI, with commitment from both sides ensuring that the fund has been rapidly fully invested. We will be looking to deliver attractive returns to our investors and look forward to creating new investment opportunities in the future."
Roger Orf, Head of European Investments for Citigroup Property Investors commented: "We are very pleased to be in a position to announce CReAM's last acquisition. Halladale and CPI have an excellent track record in this sector with transactions to date totalling more than £300m. We look forward to working with Halladale to improve the CReAM assets and to continue delivering above average returns to our Core Plus investors."