Ellandi doubles up with Kent shopping centre buy

Posted by CoStar on 28th Nov 2012

A consortium of Ellandi, Miller Developments and a group of Middle Eastern investors advised by WW Advisors, has bought the Walnuts Shopping Centre in Orpington, Kent, for £20m - an 8% yield.

The 158,000 sq ft centre has been bought from Aberdeen Property Investors.

The consortium has also bought the adjacent Crown House from Telereal Trillium, with the potential to construct more than 60,000 sq ft of new retail space on the site, which was formerly used as a job centre.

Retailers at the centre include Wilkinson, New Look, Dorothy Perkins, Argos and Peacocks.

The consortium will invest more than £30m in repositioning the shopping centre.

The Walnuts has an average weekly footfall of over 150,000 and is adjacent to a 520-space car park.

Morgan Garfield, founding partner, Ellandi said: "This deal further cements our reputation of being able to source, structure and fund off market transactions and we look forward to working with our partners on this major town centre regeneration project."

Kitchen La Frenais Morgan represented Ellandi and Miller; Aberdeen Property Investors was unrepresented.

Miller Developments will manage the proposed extension to the centre and Ellandi will asset manage the exsting centre.

The scheme is the second completion for Ellandi in a week. The investor tied up the purchase of the 200,000 sq ft Newlands shopping centre in Kettering last week as part of a joint venture with Tristan Capital Partners.

It is understood that the partners plan to invest £150m in secondary shopping centres.

The joint venture is understood to be focusing on distressed bank-led sales of malls across the UK.

David Swan, managing director of WW Advisors said: “With the Walnuts shopping centre, we have secured on behalf of our clients an investment with strong redevelopment potential in an attractive location. We are excited about this acquisition with Miller Developments and Ellandi, and will continue to seek and examine opportunities for our clients for further projects that meet their requirements.”

Phil Miller, chief executive of Miller Developments, said: “This deal presented the perfect opportunity for our continuing return to in-town shopping centre development. We are pleased to be working with WW Advisors and Ellandi on a project which allows us to use our core retail development skills, and at the same time secure an attractive investment opportunity.” 

The former managing director of Oracle Estates Mark Robinson and Deustsche UK real estate head Morgan Gardfield set up Ellandi in 2008. 

It is estimated that the levels of shopping centres transacted this year will reach £5bn by the end of the year, with £700m worth of retail assets brought to market in the second half of the year.

Source: CoStar

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