LaSalle Investment Management has bought a 50 per cent stake in intu Chapelfield, Norwich, for £148m, representing a net initial yield of 5.0 per cent. LaSalle will hold the stake on behalf of Greater Manchester Pension Fund and West Yorkshire Pension Fund with intu retaining the management role.
The price shows a small discount to the centre’s 30 June 2017 valuation. In the year to 31 December 2016 the centre generated net rental income of £15.5m.
intu Chapelfield is located in the centre of Norwich and a key retail destination in East Anglia, with an annual footfall of 12 million. The centre provides 90 units and includes key retailers such as House of Fraser, Apple, Zara, River Island, H&M and Boots.
Tom Rose, fund manager at LaSalle, said: “This is an acquisition that we believe will provide long-term value. It is a quality asset in an affluent catchment area, well-aligned with our strategy for UK investments.”