There will be keen interest in the fate of two of the UK's largest shopping centres in the coming weeks as bids are called, valuing the assets at close to £400 million.
After a strong end to 2024 and start to 2025, with Landsec completing the £492 million acquisition of Liverpool One, as revealed by CoStar News, and MDSR buying Festival Place in Basingstoke for around £100 million, among other deals, the UK shopping centre market has slowed in the last quarter with the stand-out deal being Nuveen and Sovereign Centros' £54.44 million disposal of St Enoch Shopping Centre in Glasgow to Praxis.
This week, initial bids have been called for The Lexicon in Bracknell, by the joint venture between Schroder Capital UK Real Estate Fund and Legal & General Capital.
JLL is handling the sale of the major shopping and leisure complex in the heart of the East Berkshire town with a guide price of around £160 million understood to have been attached. The Lexicon was developed by The Bracknell Regeneration Partnership, the 50:50 joint venture, in partnership with the local council. Principal tenants include Marks and Spencer, Primark, Next, JD and Fenwick.
In the coming weeks, initial bids are expected on the 50% stake in Manchester Arndale shopping centre that has been formally launched to market seeking around £235 million.
The stake was taken on by investors after malls group Intu collapsed into administration in 2020 and was offered for sale initially via a right of first refusal to M&G Real Estate, which owns the remainder. It came to market in May in a formal process via JLL which is selling the stake on behalf of the former Intu revolving credit facility investors.
The shopping centre comprises 1.96 million square feet of space with key tenants including Apple, Next, Boots, JD Sports and Zara. Over the past 24 months existing and new tenants have invested significant capital into upgraded and new stores demonstrating their commitment to the centre.
Sovereign Centros from CBRE, on behalf of M&G Real Estate, and Global Mutual, act as joint asset managers of Manchester Arndale and New Cathedral Street while Metis Real Estate and Time Retail Partners are the centre’s retained letting agents, with Green & Partners retained lease advisory agents.
Market sources suggested that there has been particularly strong initial interest in the Arndale, a rare opportunity to take a controlling ownership stake in one of the country's top five malls. There are expectations that the leading UK real estate investment trusts targeting prime shopping centre investment, including Landsec and Hammerson, are preparing to bid for Arndale, as well as M&G Real Estate. There is some speculation that L&G or Schroders may seek to buy their joint venture partner's stake in the Lexicon.