The sale of the Victoria Quarter in Leeds has taken a step forward after German fund manager Deka was picked as the preferred bidder for the shopping centre.
The company is understood to be in advanced talks to buy the 217,754 sq ft mall from the Bank of Ireland after it was put up for sale with a £135m price tag.
The fund manager is believed to have fought off competition from bidders including LaSalle Investment Management and Meyer Bergman, to secure the retail scheme for a yield of around 5.5 per cent.
Victoria Quarter, dubbed the Knightsbridge of the North because of its range of upmarket stores, is anchored by Harvey Nichols.
Other tenants include Mulberry, LK Bennett, and Whistles.
The Victoria Quarter was built in the 1980s as an upmarket retail destination. Bank of Ireland bought the centre from Highstone Estates, owned by entrepreneur Paul Sykes, for £126m in 2006.
CBRE, which is advising Bank of Ireland, and Savills, which is advising Deka, both declined to comment.