Capital & Regional, the UK-focused specialist property REIT, has sold a shopping centre in the town of Ipswich to the National Grid Pension Fund for 拢54.7 mln (鈧�64 mln).
The Buttermarket Centre, which was held in a 50:50 joint venture with Drum Property Group, comprises 235,000 ft2 (22,000 m2) of space and is currently 89% let. The group expects to make an IRR of over 40% on the total investment.
'The completion of such a complex and transformational project in just a two-year period is a great showcase for our particular expertise and asset management skills, and the IRR we have delivered is a strong testament to the success of the investment,' commented Hugh Scott-Barrett, chief executive of Capital & Regional.
The initial consideration for the joint venture was 拢19.6 mln, after repayment of associated debt of 拢19.9 mln. A further sum of 拢8 mln is contingent on the completion of the centre's letting programme, which Capital & Regional said it was confident would be achieved.
Buttermarket Ipswich Limited acquired the Buttermarket Centre in 2015 for 拢9.6 mln, when it was 43% occupied by area, and invested 拢25.1 mln of capital to transform the scheme. It is currently anchored by a 12-screen Empire cinema and relocated and upsized TK Maxx and New Look units.
'Following on from the successful sale of The Mall, Camberley, this disposal provides us with significant capital to reinvest into higher yielding opportunities,' concluded Scott-Barrett.
