GCW has sold the investment on Maidstone’s Broadway Shopping Centre for client CBRE Global Investors in a deal worth £9.45 million. The edge-of-town retail scheme on a 2.9 acre site offers medium to long-term redevelopment potential for a food store. It was sold to Legal & General at a net initial yield of 7.25% on current rents. The centre currently has 79,653 sq ft of retail space with Matalan and Lidl as tenants on the main trading level and a number of smaller shops trading on the lower level. Both Lidl and Matalan trade well from the centre where they have seven years remaining on their leases.
Prior to the sale, GCW explored the immediate redevelopment options for CBRE Global Investors. It appointed and worked with a development partner to assess the options to secure vacant possession and agree a pre-letting to a food store. “We explored the realistic development options that could be delivered in the short timeframe open to CBRE Global Investors. We were able to offer strong advice based on our understanding of supermarket operators and the planning process. Current market factors meant that a quick deal was not possible” says GCW director Fiona Nichols.
“CBRE Global Investors knew that the property had inherent redevelopment value but changes to the fund meant that they needed to sell and they wanted to do so whilst there was still meaningful value on the leases. The purchaser acquired the scheme based on current income but with the expectation that a food store might be attracted to the site in the future” adds Nichols.