A Curzon Capital Partners’ (CCP) fund — advised by Tristran Capital Partners — has paid £33m to take control of a trouble-hit south London shopping centre from the Co-operative Bank.
Acquired in conjunction with shopping centre investor Ellandi, which will act as asset manager, the Priory Centre in Dartford town centre is the fifth shopping centre to be purchased by CCP’s core plus fund since September, 2011. The fund’s strategy has always been to purchase high-yield retail centres that have a dominance over the surrounding area.
The acquisition of the convenience- and budget-led shopping centre was made for CCP by Tristan Capital Partners. In a statement its managing director, Peter Mather, admitted one of the prime reasons for the purchase was the “broken financial structure” of the asset which forced its sale at a “discounted price”.
The Priory Centre was completed in the mid-1970s and houses 38 retail units and a covered market across 180,000 sq ft. It also contains 11,000 sq ft of offices and Dartford’s two main car parks with combined space for 800 vehicle. The scheme is anchored by a Sainsbury’s superstore and is let to value focused tenants including Wilkinsons, 99p Stores, Poundland, Superdrug and McDonalds.
“Dartford is a major London conurbation and the Priory Centre forms an important part of the town’s retail offer, including the primary supermarket and car parks within the town,” explained Mather. “Whilst the centre has historically been under-managed and under-invested, there are currently a number of stable tenants in occupation and the investment benefits from a strong cash flow component.”
Mark Robinson is property director at Ellandi, the leading investment manager in community shopping centres throughout the UK. “Dartford has suffered from a number of setbacks, with the scheme being in receivership and the aborted town centre development plans from Tesco,” he said.
“Ellandi has the experience and track record of achieving real change within the communities in which we invest and we look forward to working with all local stakeholders to revitalise Dartford town centre.”
Formed in 2008 with the strategy of cashing in on the “anticipated market correction” following the recession, Ellandi has acquired nineteen financially distressed community shopping centres in the last four years, either as individual transactions or corporate acquisitions.
