Bedfordshire shopping centre changes hands following 23% boost to value
A shopping centre in Bedfordshire has been sold following a five-year turnaround programme by property and asset specialist Estama which saw its value increase by 23%.
The Quadrant Shopping Centre in Dunstable has been sold by Signal Capital to MGI following a programme of active management which saw occupancy at the scheme increase from 70% to over 95%.
Estama was appointed in 2021 to manage the 135,733 sq ft scheme, which is home to 52 units with tenants including Boots, Greggs, New Look, and Coffee #1. Estama said that at the time of the appointment, The Quadrant faced rising vacancies, increasing service charge pressures, and an ageing building requiring substantial maintenance.
Working with Signal Capital, Estama introduced a business plan designed to stabilise income, attract new tenants, reduce costs, all while strengthening the centre’s long-term investment prospects. The changes broadened the centre’s retail mix, with greater emphasis on food, drink, and everyday services.
Costs associated with a vacant former nightclub were reduced, while discussions with Central Bedfordshire Council helped to progress early plans for a potential residential redevelopment of approximately 50 homes.
Elsewhere, change of use consent was secured for a former dental practice occupying the first and second floors. It was subsequently sold to a residential developer, removing longstanding business rates, insurance, and service charge liabilities.
Henry Gray, director at Signal Capital, said: “When we appointed Estama, we wanted a partner who would manage The Quadrant as an investment, not just a building.
“The lettings strategy, cost control and investment planning have added to its value and put us in a strong position to sell. We’re grateful to the whole team for their work.”
Eoin Conway, managing director of Estama, added: “The Quadrant shows what can be achieved when property and asset management work hand in hand.
“When we took on the centre, there were some significant challenges, but also clear opportunities to improve its performance.
“By attracting the right occupiers, managing costs carefully and investing where it made a difference, we’ve helped turn those opportunities into measurable results.
“Improving occupancy from 70% to over 95% while delivering a 23% increase in value is a strong result for our client, and demonstrates the impact of consistent, hands-on management.
“Just as importantly, we’ve helped strengthen The Quadrant’s position at the heart of Dunstable, while identifying opportunities for its future. We wish MGI every success with the centre.”
Knight Frank acted on behalf of Signal Capital in the sale.