South East, Dartford Shopping Centre bought in £33m debt deal

Posted by Property Mall on 23rd Apr 2015

The Curzon Capital Partners III (CCP III) core plus fund, advised by Tristan Capital Partners, has purchased The Priory Centre, a convenience led shopping centre in Dartford town centre, from the Co-operative Bank for £33 million.

Dartford Shopping Centre was constructed in 1976 and provides 180,000 sq ft of accommodation including 38 retail units, a covered market hall, 11,000 sq ft of offices and Dartford's two principal car parks with a total capacity of 800 spaces. The scheme is anchored by a Sainsbury's superstore and is let to value focused tenants including Wilkinsons, 99p Stores, Poundland, Superdrug and McDonalds.

Peter Mather, Managing Director of Investments at Tristan Capital, said: "We saw the opportunity in the broken financial structure of this asset to acquire a southeast town centre scheme at a discounted price point. The CCP III fund's net initial entry yield is very attractive relative to other comparable shopping centres trading in Southeast England."

"Dartford is a major London conurbation and the Priory Centre forms an important part of the town's retail offer, including the primary supermarket and car parks within the town. Whilst the centre has historically been under-managed and under-invested, there are currently a number of stable tenants in occupation and the investment benefits from a strong cashflow component."

The property has been acquired in conjunction with shopping centre investor Ellandi, who will act as asset manager going forward.

Mark Robinson, Property Director at Ellandi, said: "Dartford has suffered from a number of setbacks: the scheme being in receivership and the aborted town centre development plans from Tesco. Ellandi has the experience and track record of achieving real change within the communities in which we invest and we look forward to working with all local stakeholders to revitalise Dartford town centre."

The Priory Centre is the fifth shopping centre to be purchased by CCP III since September 2011 and is a continuation of the fund's strategy to acquire high yielding centres that are dominant within their catchment areas.Maples Teesdale and PWC acted as advisors to the Fund.

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