Shopping centre sold in £16m deal

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A West Yorkshire shopping centre is to be sold to an investment trust in a £16.23m deal.

Schroder Real Estate Investment Trust has exchanged contracts to acquire the Arndale Centre in Headingley, Leeds.

The 125,834 sq ft shopping centre has 23 tenants, including Sainsbury’s, Wilkinsons and Pizza Express.

Schroder which is paying for the acquisition by issuing shares representing 10 per cent of its existing share capital to raise £17.2m, sees it as a key site to benefit from the proposed trolleybus scheme.

Duncan Owen, head of Property at Schroder Property Investment Management, said: “This acquisition is consistent with our strategy of focussing on assets offering good underlying fundamentals which are capable of adding value through a variety of alternatives uses because of a strong and convenient location.

“This property already offers high quality retail units which are delivering an attractive initial income yield which is immediately accretive to dividend cover. There is also the potential to generate further income and capital growth from asset management of the upper parts of the property.”

KPMG acted as fixed charge receiver for the centre.

Arndale Centres were the first American-style malls to be built in the UK. The first opened in Jarrow in 1961, as a pedestrianised shopping area.