The Lanes shopping centre, a major mall in Carlisle in the North West, has come to market for sale out of receivership.
Savills has been appointed to handle the sale on behalf of joint LPA/fixed charge receivers Jemma McAndrew and David Eden of Cushman & Wakefield.
It is seeking offers in excess of £15,740,000, which reflects a net initial yield of 11.60% and a capital value of £36 per square feet.
Savills said the shopping destination in the heart of the city dominates a significant catchment, with almost 130,000 customers and £879 million of retail and leisure expenditure within a 20-minute drivetime. The asset generates a net operating income of over £1.9 million per annum and spans 437,331 square feet. Major tenants include Primark, Next, Superdrug, New Look, River Island, Costa Coffee and Lush.
The Lanes has a weighted average unexpired lease term (WAULT) of 7.32 years, above the sector average, with the top tenant by income Primark, secured for another circa 16 years.
Savills points out that the scheme offers "attractive, value-add asset management opportunities", including the reletting of the 107,848-square-foot former Debenhams. The adviser said terms have been agreed with a major international retailer to take the ground floor of the unit, which spans 27,795 square feet.
Toby Ogilvie Smals, director in Retail Investment at Savills, said in a statement: “The offering of The Lanes comes at a favourable time in the UK retail investment market; there are definitely more motivated buyers in the market than we have seen for some time. Investment volumes are recovering in line with confidence in retail and the desire to capitalise on record high yields. We are optimistic that there will be high levels of interest in The Lanes, as it offers rare opportunity to acquire an asset with a high-quality tenant mix alongside attractive asset management opportunities to drive the asset forward.”
F&C REIT bought the mall in 2012 from Aviva which had owned it for the prior 30 years.