Ellandi Sell Grays Shopping Centre
Posted by Ellandi on 7th Jun 2018
Ellandi
are delighted to announce the sale of Grays Shopping Centre in Thurrock to
NewRiver, for a price of £20.2 million, representing a net initial yield of
8.2%.
The
209,000 sq ft (NIA) asset sits on a 4.7 acre site, and includes a part-vacant
office building of 32,000 sq ft, which has been attributed additional
development value. Ellandi has sought to maximise the asset’s strategic
location by drawing up a master plan for redevelopment on part of the site, as
well as engaging with Thurrock Council who have shown significant commitment to
enhancing the town centre. The potential development opportunities include a
hotel, budget gym, food and beverage units, a discount food retailer and over
200 built-to-rent residential units.
Over
the course of the current ownership, Ellandi has completed 33 lettings and
renewals with retailers, as well as improving tenant mix by attracting new
national fascias such as Costa, Burger King and Warren James. This has helped
to consolidate the centre’s position at the heart of the community, as the
dominant value and convenience shopping offer in Grays.
Jonathan
Cole, Head of Investment at Ellandi, commented,
“We
have been able to sell Grays shopping centre to a listed REIT in a challenging
market. This illustrates that investors recognised our work in positioning
Grays as a strong Community shopping centre, with a robust income yield
offering an attractive cash on cash return. The sale captures additional value
from an effective master planning exercise, where we have looked creatively at
the redevelopment potential of the site, including repurposing redundant office
space and upper parts to alternative uses.
We
look forward to seeing the development progressed by NewRiver.”