With the uplift in consumer confidence first seen early last year continuing to build in momentum, investors are increasingly choosing to channel funds into developments which encourage large scale spending. At the forefront of this commercial property boom is the retail and leisure complex, with a number of such developments in the pipeline across the country.
However, it is not only new developments which have caught the eye of investors, as the recent sale of the Queensgate Shopping Centre in Peterborough shows. The retail complex was sold for £202 million to American based Invesco Real Estate after being on the market for only four months, suggesting that overseas investors are beginning to look beyond the London market.
Invesco Real Estate is currently one of the world’s largest independent investment management firms and boasts an impressive international portfolio, operating in Europe and Asia as well as in its home market of North America. While future plans for Queensgate Shopping Centre have not yet been revealed, it is believed that a large scale refurbishment programme may well be initiated later this year.
The shopping centre was previously owned by a partnership comprising of Hammerson and insurance firm Aviva, both of whom believe the deal will help to improve their existing projects through financial contributions.
Hammerson chief executive, David Atkins, says; “This disposal brings further liquidity into our business.
“Next year will see major progress on our development projects and these additional funds will help us grow the business through our substantial development and refurbishment programme and selected acquisitions.”
Queensgate Shopping Centre offers 83,300 square metres of commercial space and currently has more than 110 tenants, comprised of a mixture of restaurants and shop units.
Real estate director at Aviva Investors, Chris Paterson, believes that the success of the centre will continue to grow under the new owners.
He says; “This has been an excellent partnership and we have enjoyed working with Hammerson.
“The centre was well received by the market and we are very satisfied with the end result.”
