Leeds Arndale Centre has been snapped up by the Schroder Real Estate Investment Trust in a deal worth £16.23 million. The 125,384 square foot shopping centre was placed on the market back in October of last year and garnered a reasonable amount of attention before the Trust secured the deal last week.
The centre was built in 1964 and was one of the first American style malls in the Arndale Property Trust’s extensive portfolio, along with centres in Armley and Crossgates. Since then, the Arndale Centre has undergone extensive renovations, with the most recent being a £2.5 million refurbishment in 2009 to add floor space and re-clad the exterior of the property.
Schroder Real Estate Investment Trust also plans to channel investment into the improvement of the property, in particular to take advantage of the proposed trolleybus scheme due to revolutionise public transport in the area. The New Generation Transport (NGT) project gained approval from the Department for Transport in July last year and is now in the final stages of planning before construction gets underway.
Chartered surveyors Peter Lund and Partners acted on behalf of Schroder Real Estate Investment Trust during the negotiation process and believe that their client will benefit from the acquisition.
Mr Lund says; “The Arndale Centre has been bought at the right time.
“Headingley is going to improve dramatically in the next few years, particularly with the proposed trolleybus scheme.”
The Arndale Centre already has several high profile tenants including Wilkinsons, Pizza Express and Sainsbury’s. Morrisons will also be taking up three units after recently signing a deal to open an M Local store on the site.
As shopping centres continue to become increasingly attractive prospects for potential investors, it is likely that the Arndale Centre will prove extremely profitable for its new owners. However, with stiff competition in the form of the nearby Trinity Leeds development which opened in March of last year, Schroder Real Estate Investment Trust may find that a high standard of modernisation is required in order to remain relevant in the competitive retail industry.
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