Major shopping centre sold out of receivership for £99m
A major UK shopping centre has changed hands after being sold out of receivership.
Savills, on behalf of receivers BDO, has sold Festival Place in Basingstoke to MDSR Investments for a total consideration of £99.1m.
Comprising over 1.1 million sq ft set over 20 acres, Festival Place dominates the commercial core of the Hampshire town. The scheme is anchored by Marks & Spencer, Next, and H&M, with other occupiers including Superdrug, Apple, Nando’s, Sports Direct, Five Guys, TK Maxx, and Vue Cinema.
The scheme benefits from a weighted average unexpired lease term of 5.76 years, with 4.36 years to break.
BDO’s business restructuring partners Tony Nygate, Kiri Holland and Lee Causer were appointed as fixed charge receivers of Festival Place in May 2023. They have since looked to maximise the value of the scheme, working with asset manager Sovereign Centros to complete over 80 leasing transactions. This has seen an increase in the occupancy rate, with 24 new entrants to the centre.
In addition, a new major leisure initiative has been advanced, with Superbowl and Hans Buffet taking 16,750 sq ft and 10,000 sq ft spaces, respectively. Savills said there is also demand for the former Debenhams space, which spans three levels totalling 107,014 sq ft.
Mark Garmon-Jones, director of retail investment at Savills, said: “We are delighted to have completed the sale of Festival Place to MDSR Investments. The property provided the purchaser with an opportunity to acquire an asset with significant future potential. There are already considerations around introducing a mix of new exciting retail and leisure uses, aimed at enhancing dwell time, footfall and customer spend.”
Tony Nygate, partner at BDO, added: “Following a comprehensive two-year strategy to improve and maximise the value of Festival Place, we are pleased to have completed the sale and achieve this outcome for creditors.”
In addition to the new ownership, Estama – which alongside CBRE advised MDSR Investments on the sale – has been appointed as asset and property manager at Festival Place.