Mauritian-based special property vehicle, New Frontier Properties Ltd, which is listed on the Stock Exchange of Mauritius (SEM) and the Johannesburg Stock Exchange (JSE) has made its debut in the UK retail market, having purchased two shopping centres in Middlesbrough and Burton-on-Trent in a corporate transaction for circa £179 million from F&C Reit.
New Frontier Properties is backed by South African REIT, Rebosis Property Fund, which owns a controlling stake in the company. Rebosis floated in 2011 and was established by Billion Group Limited, the South African property development and investment company founded by prominent business figure, Sisa Ngebulana.
Mike Riley, CEO of New Frontier Properties, commented: “The acquisition of The Cleveland Centre and Coopers Square marks New Frontier Properties start of becoming a major UK shopping investor. These shopping centres are indicative of the sort of assets we are considering; strong, regionally dominant shopping centres with significant potential for improvement. We hope to announce further purchases in due course.”
New Frontier has appointed London-based investor and asset manager, Waypoint Asset Management founded by Mike Riley and Nick Gregory. The company has earmarked up to £300 million to invest in UK shopping centres in the next year through their retained advisors, Lunson Mitchenall and Coady Supple.
Lunson Mitchenall and Coady Supple advised New Frontier Properties and Waypoint Asset Management on the purchase of The Cleveland Centre and Coopers Square. CBRE advised F&C REIT.