A private Northern Ireland investor is understood to have paid £14.8 million sterling for the Flagship Centre in Bangor, Co Down, the first significant shopping centre investment to come on the market this year.

The sale was completed by agents Lambert Smith Hampton.

It is understood that Republic-based developers, Treasury Holdings, had shown interest in the centre but withdrew.

The 150,000 sq. ft centre has a rental of £1,152,500, which suggests a yield of 7.4 per cent on the sale price. The agents say the projected rental income, assuming vacant units are let, should be £1,229,000.

The Flagship Centre, situated in Bangor's Main Street, has a 32,000 sq. ft Dunnes Stores as its anchor at ground level.

There is a 25,000 sq. ft Co-Op food-store on the first floor.

Other tenants include Peacocks, Iceland Frozen Food, Mark One, Argos, Adams, Radio Rentals, Superdrug, Burger King and Sports Division.

The current Zone A rental is put at around £35 per sq. ft, which is below the £40-plus rental levels on the Main Street.

However, the most recent letting in the centre to Whizzkids achieved a Zone A rental of £41.40. The previous highest letting price achieved £39.27.

The Zone A rates are low relative to other comparable provincial shopping centres in the North.

The Bloomfields Centre, also in Bangor, is commanding Zone A levels of £75 per sq. ft, as is the Abbey Centre, across Belfast Lough in Newtownabbey. The Buttercrane Centre, in Newry, is achieving levels of £65; the Ards Shopping Centre, is achieving £60; and the Tower Centre, Ballymena, and Bow Street Mall, Lisburn, are about £55.

Flagship Centre, which has a 500 space multi-storey car-park, also has potential for further rental growth and development.

Bangor has high levels of disposable income and agents report continuing aggressive interest by UK multiples for good shopping centre locations in the North.

It is understood the supermarket group, Safeway, intends to development a major store in the centre of Bangor.