We recently acted on behalf of our client, M&G Real Estate, in the £236 million acquisition of a 50% interest in Highcross shopping centre, Leicester. The off market deal represented a net initial yield of 5.5%. Hammerson were the vendors and are remaining as the other 50% partner.
Highcross, Leicester is a dominant Top 20 shopping centre of 110,000 sq metres and 3000 car spaces which attracts almost 19m visitors a year. It is anchored by John Lewis, Debenhams and a Showcase de lux cinema in a high quality 2 level and retail and leisure environment. Recent store openings include significant upsizes for Zara, J D Sports along with new stores for Jo Malone, Social Climbing, MOD Pizza and Cotswold Outdoors.
John Griffin, Head of Investment at Lunson Mitchenall, said: “The acquisition of Highcross, the largest Regional retail transaction in 2018, proves that the sector is still in demand amongst investors for prime sustainable assets with long term futures. Highcross is strategically located, well let providing modern retail and leisure space in an environment where tenants trade successfully.
“Lunson Mitchenall was proud to represent M&G Real Estate on behalf of its Asian investor. As move further into 2019, it is encouraging to note the extent to which UK retail can attract investment from established landlords and new sources of capital. This is proof that there is some positive news emanating from the UK retail sector and, similarly, good opportunities to grasp. The key is to maximising these opportunities, in this climate, is a willingness to trust those with specialist knowledge and insight in the sector”