Major Midlands shopping centre handed £250m price tag
A major UK shopping centre in the West Midlands has been placed on the investment market with a price tag of £250m, reflecting a net initial yield of 9%.
The owners of Merry Hill shopping centre in Dudley have announced that the 1.4 million sq ft scheme has been put up for sale, with Knight Frank appointed to find a suitable buyer.
The scheme – which is over 96% let – has undergone a number of changes to its tenant mix in recent months, introducing new leisure concepts such as Hollywood Bowl and Funstation, and welcoming national debuts for Harvey Norman and XF Gym. Merry Hill also includes a full let retail park.
The Merry Hill directors said in a statement: “The last few years have been transformational for Merry Hill, as investment, proactive asset management, and an effective leasing programme have combined to return it to its rightful place as a top 10 UK mall. Merry Hill is primed for the next stage of its journey, with several initiatives planned to cement its position in the super-regional hierarchy. Consequently, now is the right time for a new owner to take on an asset that is thriving to realise further value.”
Merry Hill is asset managed by Sovereign Centros from CBRE, Time Retail Partners, JLL, and Font Real Estate retained as leasing agents. The consortium of lenders that own the scheme include Wells Fargo and Axa Investment Management.