In the biggest shopping centre investment deal in the North this year, the Richmond Shopping Centre, in Derry has been sold for a price understood to be £22 million sterling.
The 120,000 sq ft centre is fully let, producing an income of £1.775 million per annum. Lambert Smith Hampton Investment director, Paddy Brennan, who handled the sale, is reporting a net initial yield at Richmond of 7.66 per cent.
The sale follows the £14.8 million achieved for the 150,000 sq ft Flagship Centre, in Bangor, Co Down, which was also handled by Mr Brennan. The Richmond sale was the biggest shopping centre investment deal since last year's sale by Sainsbury's of the Forestside Centre for £55 million.
The Richmond centre, which is anchored by Dunnes Stores, has been sold by the UK property group, IMPF, which has a portfolio worth around £260 million and capital resources of £130 million. The group bought Richmond in 1996 and did some £700,000 worth of refurbishment work upgrading lighting and fittings. The purchaser is an unnamed private UK investor.
Commenting on the sale of the Richmond centre, Mr Brennan said: "The centre continues to perform exceptionally well. Three years ago, I was involved with IMPF when the property was purchased for £15.75 million. Rents have steadily grown from £50 per sq ft Zone A to £75 as a result of the active management coupled with the fact that the centre trades its socks off. This has resulted in a steady stream of retailers seeking representation within the scheme."
As well as the two Dunnes Stores, the tenant list includes Burtons Menswear, Stylo Barratt, New Look, JJB Sports, Dorothy Perkins, Bay Trading and Claire's Accessories.
The sale of the Richmond Centre marks a further major step for Lambert Smith Hampton's investment arm in Belfast with an estimated £80 million worth of deals in the North, Scotland and England - with all the money coming from Northern investors or from the Republic.
Other investment deals by the agents include the £16 million for the Trinity Park office campus in Edinburgh; £5 million for the 86,000 sq ft distribution warehouse at the Gemini Business Park in Warrington; and the £10.2 million achieved for the 57,200 sq ft Abbey National Call Centre office development, at Mays Meadow, in Belfast's Laganside area.
In recent weeks, Lambert Smith Hampton has been running advertisements in the UK property press seeking deals for Irish investors with £200 million in funds for investments in Britain and citing over £100 million worth of investment in the past year.
Mr Brennan said attitudes in the UK investment market have changed dramatically in the past year with uncertainty and even suspicion of Irish investors transformed to a situation where the market has begun to realise the scale of Irish investment interest.
