Ex-KFC tycoon snaps up Belfast’s Forestside for £42m
The former operator of the UK’s largest KFC franchise has acquired one of Belfast’s biggest shopping centres.
Michael Herbert is understood to have acquired Forestside Shopping Centre through investment vehicle Mussenden Properties, according to BBC News.
He is believed to have paid £42m for the scheme, representing a finger-lickin’ £5m premium on the original asking price of £37m.
The 336,000 sq ft shopping centre is home to anchor tenants Sainsbury’s, M&S, Dunnes Stores, and Next. At the time of sale, the scheme had 35 fully-let retail units and panning permission for three restaurants in one of its car parks.
Forestside Shopping Centre was placed on the market by Savills in May of this year.
Ben Turtle, director of investment at Savills Belfast, said: “The net initial yield of 7.91% is significantly ahead of market comparables in both Northern Ireland and Great Britain, and reflects the quality of the asset.
“The transaction is evidence of growing investor appetite for such prime product in Northern Ireland, and we are pleased to have achieved this stellar result for our client despite some current headwinds.”
At their peak, the Herberts operated a 140 restaurant-strong KFC franchise group which they had built over 40 years. The chain was then sold in 2020.
Michael Herbert is also a prominent property developer, and is the former owner of Bow Street Mall in Lisburn and the Flagship Centre in Bangor.
It is also understood that Foyleside Shopping Centre in Londonderry is sale agreed and is being bought by a local investment vehicle, according to the Belfast Telegraph, which first reported the Forestside sale. The property had been marketed for just over £34m.
Osborne King acted for the purchaser, whilst Savills acted for the vendor.