CBRE Global Investors and Universal-Investment have completed the acquisition of Lion Walk Shopping Centre in Colchester, Essex, on behalf of German pension fund Bayerische Versorgungskammer (BVK) from Sovereign Centros and Ares Management for £76.5 million.
Lion Walk is Colchester’s prime retail pitch and main fashion destination. The 205,000 sq ft centre serves a strong, growing catchment population of more than 126,000 people and more than 4.5m tourists a year.
It comprises more than 40 shops, with 86% of the income leased to high profile national multiple retailers including Marks & Spencer, BHS, Boots, WH Smith, New Look, Topshop/Topman and River Island. A new 60,000 sq ft Primark store is due to open in the first quarter of 2017, cementing the scheme as Colchester’s prime pitch for the foreseeable future.
Tom Gamble, Director, CBRE Global Investors, commented, “Lion Walk provides us with an opportunity to secure a good quality shopping centre located in the prime pitch within Colchester. The town is forecast to see above average population growth over the next decade. The scheme is already well let however we see further potential to improve the tenant mix and increase rents following the opening of Primark next year.”
Harald Floeer, Director Portfolio Management, CBRE Global Investors said, “The acquisition of Lion Walk is a good example of our strength in the retail sector and demonstrates our ability to add value for our clients.”
Alexander Tannenbaum, Managing Director at Universal-Investment in charge of the Real Estate division explains, “German institutional investors are still internationalizing their real estate allocations”. Since 2011 Universal-Investment invested about EUR 2 billion in real estate abroad on behalf of institutional investors.
CBRE Global Investors was advised by Savills, CBRE acted for the vendor.
