GE Real Estate sells UK shopping centres for £300m

17 January 2005

GE Commercial Finance Real Estate UK (“GE”), advised by Orchard Street Investment Management LLP has sold five major shopping centres for a total value of circa £300 million. The properties were originally acquired through the formation of a joint venture with Haslemere in 2003. The five properties and the details of the sales are as follows: Shopping Centre Mansfield have been sold to Premier Property Group for a total price of £138m, The sale prices reflect net initial yields of the centres of 5.97% and 6.39% respectively. Middleton Grange provides circa 51,115 sq m (550,000 sq ft) of well configured retail accommodation and benefits from strong anchor tenants including Marks & Spencer, Woolworths and W H Smith. The Four Seasons Shopping Centre provides approximately 20,910 sq m (225,000 sq ft) of retail accommodation. Tenants include Debenhams, Boots, Littlewoods and HMV. Cushman & Wakefield

Healey & Baker acted on behalf of the purchaser.

Cross Gates Shopping Centre, Leeds has been sold to Donnegall Place for £44m reflecting a net initial yield of 6%. The freehold centre provides 12,080 sq m (150,000sq ft) of retail and approximately 2,400 sq m (21,000 sq ft) of office accommodation. Tenants include Boots, Tesco Metro and Woolworths. McKibbin Commercial acted on behalf of the purchaser.

Mercat Shopping Centre, Kirkcaldy has been acquired by City Site Estates for £38.5m reflecting a net initial yield of 6.28%. The prime 19,981 sq m (213,500 sq ft) leasehold centre is let to a number of strong anchor tenants including Woolworths. Bhs, TK Maxx and New Look. Atis Real Weatheralls acted on behalf of the purchaser.

St Nicholas Shopping Centre, Sutton has been sold to Golfrate Property for £77.75m reflecting a net initial yield of 6.07%. The three storey 36,370 sq m (391,500 sq ft) leasehold centre dominates Sutton’s retail environment and is let to a number of strong anchor tenants including Allders, JJB Sports and Littlewoods. CBRE acted on behalf of the purchaser.

Jones Lang LaSalle advised GE on all of the disposals.

END

For more information:

John Humberstone
Orchard Street Investment Management
+44 (0)20 7494 8860
jhumberstone [at] orchard-street.co.uk

Dido Laurimore/Ellie Sweeney
FTI Consulting
+44 (0)20 3727 1000
osim [at] fticonsulting.com

Notes to Editors:

Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.