Assets News

InfraRed completes £77m Norwich Castle Mall deal

InfraRed Capital Partners has completed a deal to buy the Castle Mall shopping centre in Norwich from The Mall Fund for £77.3m, representing an initial yield of 7.8%.

The Castle Mall is located in Norwich City Centre and comprises more than 350,000 sq ft of retail space in 80 shop units. Tenants include TK Maxx, New Look, Boots and Argos as well as an eight-screen multiplex cinema let to Vue.

Hark Group will asset manager the scheme for InfraRed.

Norwich ranks as the 10th UK retail market, according to retail analysts CACI, with a primary catchment exceeding an estimated one million people.

In 2011 Infrared bought The Galleries in Bristol and in March it bought the St Johns Centre in Liverpool from Land Securities.

Chris Huxtable, director at InfraRed, said: “The purchase of Castle Mall completes a hat-trick of shopping centre deals for us since we re-entered the UK shopping centre market at the beginning of 2011. This time, we have directed our investment into in the top-tier retailing cities and into large centres that are characterised by high footfall, affordable rents and strong retailer performance. This segment of the retail market has proved resilient in the current economic climate. We plan to add considerable value to the centres through additional investment.”

DTZ advised InfraRed on the deal.

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