FHP Property Consultants acting on behalf of Broxtowe Borough Council have completed the acquisition of the long leasehold interest in The Square Shopping Centre in Beeston for a price of £7.565 million.
The Centre, which was originally built in the 1960’s and is home to tenants including Peacocks, Birds, Argos, Wilkinsons, Costa Coffee and Pure Gym, totals some 80,000 sq ft of retail accommodation together with 3 Apartments.
David Hargreaves of FHP who negotiated the acquisition on behalf of Broxtowe Borough Council said:
“We became aware that the owners, Henry Boot Developments, were looking to bring the long leasehold interest in the investment to the market in the summer and suggested to Broxtowe Borough Council, who own the freehold, that this would be a solid and secure investment for them, whilst at the same time providing them with control over a major part of Beeston town centre.
Henry Boot Developments had completed the refurbishment of The Square and the Tram had opened which has resulted in a significant increase in pedestrian flow in this part of the town and so it was an opportune time to buy and Broxtowe Borough Council took an entrepreneurial view and asked us to try to buy the scheme before it hit the market, which is what we did.
The 13 retail units produce a total rent of £631,450 per annum with 1 shop unit vacant which is to be marketed by FHP at £45,000 per annum and is opposite Wilkinsons, Pure Gym and B&M.
Cllr Richard Jackson, Leader of Broxtowe Borough Council, said:
“I am delighted to announce that Broxtowe Borough Council has completed purchase of the leasehold interest on The Square in Beeston from Henry Boot,” said Councillor Richard Jackson, Leader of the Council.
“This is an important step in giving the Council more direct control over this important part of the town centre and the future of development in the area. The Council is united on the purchase of The Square after it was unanimously approved by Full Council and we are excited to begin the next phase of Beeston’s redevelopment” he added.
Ted Czerniak, Director of Housing, Leisure and Property Services at Broxtowe Borough Council, said:
“The opportunity introduced by FHP to Broxtowe Borough Council was too good an opportunity to miss.
We have transferred assets that were producing relatively low level of return and by buying the Shopping Centre will now see a return of close to 7% on our investment.
Furthermore it provides us with control for the development of Phase 2 of The Square Shopping Centre on the adjacent site that was previously the Bus Station, Car Park and Fire Station. We will shortly be going out to the market to find a developer or development partner, who we hope will develop a cinema, restaurants and other uses to bolster the night time economy in Beeston, to create jobs and to take advantage of the Tram system.
We were delighted that FHP were able to persuade Henry Boot Developments to agree a sale off-market, and our Estates Team of Matthew Kirk and John Delaney worked closely with the FHP Team to complete the acquisition as per the time scale agreed.”
Amy Walker of Anthony Collins Solicitors LLP provided legal advice for Broxtowe Borough Council throughout the acquisition.
Henry Boot Developments were represented by Irwin Mitchell.
Broxtowe Borough Council will manage the shopping centre in-house, whilst FHP will handle the letting of the 2 apartments and the 1 vacant shop which was previously Yorkshire Bank.
