LONDON (Alliance News) - Property developer Capital & Regional PLC on Wednesday said it has struck a deal to acquire The Marlowes Shopping Centre in Hemel Hempstead for GBP35.5 million, as it said it delivered like-for-like growth in rent over the course of 2015.
Capital & Regional has acquired the Marlowes Shopping Centre from Standard Life Investments, the investment management arm of FTSE 100-listed Standard Life PLC, with the GBP35.5 million purchase price reflecting an initial yield of 7.0%.
The deal will be funded in part by a new GBP17.8 million debt facility that the developer has secured with Royal Bank of Scotland and is due to complete in February.
Capital & Regional said Hemel Hempstead, north west of London, is a strong commuter town which has benefited from a significant recent investment by the local authority.
Elsewhere, Capital & Regional said its like-for-like contracted rent across its portfolio grew 2.8% to GBP69.7 million over the course of 2015. It secured 72 new lettings and 52 renewals during the year, and its occupancy rate at the end of December was 97.2%, up from 96.1% a year earlier.
"The accelerating momentum in terms of letting activity and capex spend seen in the second half of 2015 confirms that we are on track to deliver the attractive returns promised as part of Capital & Regional's asset management plans," said Hugh Scott-Barrett, Capital & Regional's chief executive.
Capital & Regional shares were up 2.2% to 64.625 pence on Wednesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Capital & Regional (CAL)