F&C Property Asset Management plc, on behalf of client F&C Commercial Property Holdings Limited, has sold the leasehold investment at Lion Walk shopping centre in Colchester, Essex to LaSalle Investment Management for £69 million.
The property is held on a 125 year lease, which is set to expire in March 2102, from Colchester Borough Council. Prime Zone A rents at the centre are around £167 psf and the current rental income equates to £4,388,000 per annum.
Lion Walk shopping centre was built in 1977 and comprises 236,000 sq ft (21,925 sq m) of retail with some offices and residential flats. It occupies the prime retail pitch in Colchester and is anchored by leading retailers including Marks & Spencer, Boots, BHS and WH Smith. Other major retailers at the centre include River Island, New Look, Topshop, HMV and Body Shop.
Richard Kirby, Director of Property Funds at F&C Property Asset Management plc commented: “We are delighted to have concluded this investment deal especially in the current challenging market conditions. This deal underlines the fact that there are still investors looking for attractive, well located retail holdings within the marketplace.”
GCW acted for F&C Property, while DTZ and Jackson Criss represented the purchaser LaSalle Investment Management. The lawyers acting on the transaction were DLA Piper UK LLP for LaSalle and Lovells for F&C Property.