Tesco and the BP Pension Fund have sold Bradley Stoke’s Willow Brook Centre to CBRE Global Investment Partners (GIP) for £88.8m.
The centre was originally developed by Spenhill, the regeneration subsidiary of Tesco, but a 50 percent share was acquired by the BP Pension Fund in July 2008, three months before the centre opened, forming an £80 million joint venture.
The 231,000 sq ft retail park has around 40 tenants, including a 90,000 sq ft Tesco Extra store.
The deal was done on behalf of CBRE GIP’s European Co-Investment Fund (ECF), working with Arax Properties. The two have already collaborated on a logistics portfolio last year.
Charles Baigler, fund manager ECF, CBRE GIP, said:
“We have acquired an asset that is anchored by a high performing tenant and offers a long term, stable income stream supported by strong catchment fundamentals. The Willow Brook Centre also provides a number of asset management opportunities that will allow us to increase and diversify income.”
The deal is the latest in a string of property sales carried out by Tesco as it seeks to strengthen its balance sheet.
Willow Brook Centre manager Andy Wynn told the Journal that staff and tenants had been made aware of the acquisition, but it will be “business as usual” at the centre and customers will not be affected.
This article originally appeared in the August 2016 edition of the Bradley Stoke Journal news magazine, delivered FREE, EVERY MONTH, to 9,500 homes in Bradley Stoke, Little Stoke and Stoke Lodge. Phone 01454 300 400 to enquire about advertising or leaflet insertion.
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