MDSR Investments has completed the acquisition of Festival Place Shopping Centre in Basingstoke for £99.1 million from receivers BDO advised by Savills.
Israeli investor MDSR was advised on the acquisition of the long-leasehold interest by CBRE and Estama, which has been appointed as asset manager.
BDO business restructuring partners Tony Nygate, Kiri Holland and Lee Causer were appointed as fixed charge receivers of Festival Place in 2023. The receivers said they have executed a plan to maximise value, working closely with asset manager Sovereign Centros to complete more than 80 leasing transactions to increase the occupancy rate, with 24 new entrants.
They have created a new leisure offer with lettings to Superbowl and Hans Buffet in 16,750 square feet and 10,000 square feet respectively. BDO and Savills added that there is also strong demand for the former Debenhams space, which spans three levels totalling 107,014 square feet.
Comprising 1,127,629 square feet over 20 acres, Festival Place dominates the commercial core of the London commuter town. Anchor tenants include Marks & Spencer, Next, and H&M, with other occupiers including Superdrug, Apple, Nando’s, Sports Direct, Five Guys, TK Maxx and Vue Cinema. The scheme benefits from a strong weighted average unexpired lease termof 5.76 years, with 4.36 years to break.
Mark Garmon-Jones, director of retail investment at Savills, said in a statement: “We are delighted to have completed the sale of Festival Place to MDSR Investments. The property provided the purchaser with an opportunity to acquire an asset with significant future potential. There are already considerations around introducing a mix of new exciting retail and leisure uses, aimed at enhancing dwell time, footfall and customer spend.”
Tony Nygate, partner at BDO, added: “Following a comprehensive two-year strategy to improve and maximise the value of Festival Place, we are pleased to have completed the sale and achieve this outcome for creditors.”
AEW Europe and Teacher Retirement System of Texas bought Festival Place from the-then TH Real Estate for around £285 million, a 6.3% yield, in 2015.
The sale is a bellwether large-ticket transaction for the shopping centres market. In 2024, capital values surpassed the seven-year average, recording the highest levels since 2016, reaching £2.034 billion across 45 transactions, reports Savills, which in a recent article for CoStar News suggested 2025 is shaping up to be an even more active year for shopping centre investments.