A North East shopping centre has been snapped up alongside a retail destination in South Wales in a deal worth £138m.
Commercial property and investment company LCP has swooped to buy the Galleries shopping centre in Washington from M&G Real Estate in its biggest acquisition to date, also taking on Wales’ largest shopping centre, the Cwmbran Centre, as part of the deal.
The North East portfolio includes the Galleries Shopping Centre, which has more than 200 units spread over 535,000 sqft, anchored by Asda and Sainsbury’s, and the adjacent 158,000 sqft Galleries Retail Park, which has 16 retail units, including Aldi, Matalan and River Island.
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The shopping centre has 2,500 free car parking spaces and a dedicated bus station, while the retail park has 600 car parking spaces. Marketing materials issued ahead of the sale also revealed how the site has the potential for the construction of up to 6,000 sq ft of new accommodation at the park.
Buying the two UK sites takes the group’s retail acquisitions over the past 12 months to a record £300m.
James Buchanan, managing director of LCP, said: “Despite the challenges over the past few years in the retail sector – and the last 21 months of dealing with Covid-19 adding yet more difficulties – we remain confident there is a positive future for the UK retail sector and that it continues to be buoyant.
“We had an exceptionally busy 2021, with 35 acquisitions in the local convenience and retail sector, but we could not let up the opportunity to acquire the Cwmbran Centre and the Galleries, which are well-performing centres that serve populations 412,000 and 822,000 respectively.
“The past 12 months has demonstrated that we are serious about investing in and adding to our retail portfolio. We are excited about the prospects for 2022 and continue to actively seeking opportunities across the country, with £300 million available to invest for assets ranging from £1m to £100m.”
Cwmbran Centre has 180 retail units over 740,000 sq ft, including a 48,000 sq ft Primark, and is anchored by a 100,000 sq ft Asda. The sale also includes four office blocks.
JLL acted for LCP, and Osborne Clarke acted as legal advisory.
The deal comes three weeks after Supermarket Income REIT (SUPR) snapped up Sainsbury’s in Washington and an Asda supermarket in Cwmbran for £55.1m.
Meanwhile, the Cleveland Centre shopping complex was acquired by Middlesbrough Council two weeks – for seven times less than it sold for seven years ago – in moves that aim to secure the town centre’s future.
The authority completed the purchase of Cleveland Centre this week for just £12m – a distinct drop on the £85m New Frontier Properties paid for it in April 2015.
Middlesbrough mayor Andy Preston said the council was “stepping in to save” the centre and would be making more announcements soon on its plans to ensure long-term jobs and breathe new life into the town centre.
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