Assets News

InfraRed/Hark eye The Mall Norwich

InfraRed Capital Partners and Hark Group are under offer to buy the Mall Fund's The Mall Norwich shopping centre in a circa £80m deal, CoStar News understands.

The 371,000 sq ft freehold covered centre is let to tenants including Argos, Boots, TK Maxx, Mothercare, New Look and Vue Cinemas.

Market sources this week said the centre had gone under offer for around £80m, a circa 8.5% yield, with the buyer understood to be the acquisitive fund manager InfraRed and partner Hark. 

InfraRed, which was recently spun out of HSBC, and Hark Group are also understood to be in discussions to buy the St John’s shopping centre in Liverpool from Land Securities in Liverpool for around £100m.

The  Mall in Norwich is owned by The Mall Fund, the specialist UK shopping centre fund which was founded by Capital & Regional in conjunction with co-manager Aviva Investors in 2002. 

In January C&R increased its stake in the Mall Fund from 18.16% to 20.15% after buying units from clients of LaSalle Investment Management.

Last September, the fund sold two assets to F&C REIT - the 430,000 sq ft Cleveland Centre in Middlesbrough for £82m and the 170,000 sq ft Alhambra Centre in Barnsley for £26m - with £104m of the proceeds used to prepay down the securitised debt in an agency-issued CMBS.

The repayments were part of a deal struck with CMBS bondholders in July 2010 in exchange for an extension to the CMBS loan out to summer 2015.

The Mall Fund has eight other shopping centres in addition to the Norwich Mall Fund.

DTZ is understood to be advising InfraRed and Hark.

C&R declined to comment.

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