Capital & Regional has bought the Exchange centre in Ilford, east London, from a Meyer Bergman fund for £78m, reflecting a net initial yield of 6.70 per cent.
C&R said the purchase is in line with its strategy of selectively acquiring dominant local shopping centres that provide the opportunity of accelerating income and capital growth by utilising the company’s asset management platform and expertise.
The Exchange centre is located opposite Ilford train station which will be rebuilt ahead of the opening of Crossrail in 2019. It has three trading levels with 77 units providing 300,000 sq ft of lettable space and a multi-storey car park with over 1,000 spaces. The scheme is anchored by Debenhams and Marks & Spencer with other retailers including H&M, Next, River Island, Sports Direct, TK Maxx and Wilko.
Chief executive Hugh Scott-Barrett said: “The acquisition provides us with an opportunity to redeploy quickly the capital released from our two recent successful disposals into an investment which offers strong income and capital growth prospects and dominates the retail offer in a large and growing cosmopolitan East London town.
“The Exchange is a centre we know well having previously been owned within The Mall. We see significant opportunities for leisure and residential development supported by an ambitious local authority that is keen to facilitate investment in the area.”
