Ellandi Retail Fund debuts with Great Yarmouth mall
Posted by CoStar on 1st Nov 2013
The Ellandi Retail Fund has secured £60m of equity commitments and will target a “portfolio of high yielding locally orientated shopping centres”.
Chenavari Investment Managers is backing the fund enabling Ellandi to leverage up to build a circa £130m portfolio offering a “double digit cash yield from diversified, granular and defensive rental streams”.
The first acquisition is the Market Gates Shopping Centre, a circa 220,000 sq ft scheme in the heart of Great Yarmouth, which Ellandi had bought out of administration for around £28m, a 9% yield.
The scheme was re-furbished in 2008 and is anchored by Debenhams, New Look and Wilkinson.
Ellandi is already one of the most active investors targeting the secondary shopping centre market, notably in partnership with Tristan Capital Partners.
Morgan Garfield, founding partner at Ellandi said “The Ellandi Retail Fund is an exciting step in the evolution of our business. We see an excellent opportunity to build a portfolio that will provide a strong cash yield and significant capital growth prospects, derived from our asset management expertise. The fund is structured in order to have the flexibility to attract further investors in due course.”
“The Ellandi Retail Fund is actively pursuing additional acquisition opportunities and we are also continuing to build our relationship with established and new equity partners.”
Andrew Haines, partner at Chenavari Investment Managers said “We are pleased to have backed Ellandi on their new fund’s first acquisition. Mark and Morgan have built a strong team and we believe that they will rapidly create value on Great Yarmouth as they have done on their other assets.”
Mike Wimble, asset manager at Ellandi, added: “Core to our strategy will be the re-invigoration of the letting campaign to get the vacant units let to the right retailers. Alongside this we will be investing in the retail environment to improve the overall offer and to provide services such as free Wi-Fi. We believe we can deliver a shopping centre that the population of Great Yarmouth deserve”.
Ellandi was advised by Douglas Stevens & Co and Irwin Mitchell.
The vendors were Matthew Cowlishaw, Neville Khan and Robert Harding acting as the administrators of the Market Gates Shopping Centre GY Limited.
The vendor was advised by Pradera, Lunson Mitchenall and Eversheds.