Southend-On-Sea shopping centre put up for sale
18 October 2013 by Marketing Team
The Royals Shopping Centre and 450 space multi-storey car park in Southend-on-Sea has been put up for sale this week with agents Knight Frank instructed to seek offers in excess of £32.5m.
Current proprietors Orchard Street Investments acquired the circa 280,000 sq ft shopping centre in 2009 for £31m.
Anchor tenant Debenhams has 72 years at market rent remaining on its lease with several other key tenants such as Primark, Boots and TK Maxx all having recently extended their tenures at the site.
It is understood that the current gross income is in the region of £3m per annum which equates to approximately £2.75m net, or an 8% yield. 92% of this income is sourced from nationwide multiple retailers.
Knight Frank suggest that there are opportunities to increase the turnover by improving the catering offer and letting vacant units. There is also the possibility of raising additional revenue through the car park tariff.
The Royals was previously part of a portfolio of five shopping centres and retail parks across the UK being marketed for £120m by Orchard Street Investments.
Source: costar.co.uk, building.co.uk