Listed investment holding company Tradehold (TDH) has acquired a major shopping centre in Greater Manchester‚ which increases the value of the group’s property portfolio by 46% to £76m.The deal was concluded through its UK subsidiary‚ Moorgarth.
The centre is expected to provide an initial net yield of 8.6%‚ the company said in a statement.
The midtown shopping complex‚ which cost £105m to build‚ has declined in recent years‚ despite being comprehensively refurbished in 2008. It was bought by Moorgarth from the administrators for £23.5m.
Moorgarth has already obtained approval from the town council for the first phase of the upgrade of which the total cost is expected to be close to £15m. The plans include a multi-theatre cinema complex and 4‚000 square metres of new restaurant and retail space.
Tradehold chairman Christo Wiese said the acquisition was in line with management’s decision to focus on the acquisition of regionally dominant shopping centres. A similar centre was bought near Glasgow about a year ago.
“The latest acquisition represents exceptional value with promising potential for further asset enhancement. The property is on land over which we have a lease hold for 150 years‚ which can be extended until 2250‚ while the rental contract of our major tenant has 73 years to run.
“In addition‚ since we announced the upgrade of the centre‚ there has been lively interest in the available space from potential tenants.”
