Intu Properties has exchanged contracts with the Queensland Investment Corporation to acquire the remaining 50% of the Merry Hill estate for £410m before expenses. This represents an income yield of 5.2%, based on net rental income of £43m.
Located 10 miles west of Birmingham, the UK’s second largest city by population, the estate comprises the main shopping centre, together with retail parks, offices, leisure and development land covering 229 acres.
David Fischel, Chief Executive, commented, “We are pleased to have been able to acquire the remaining 50 per cent interest in intu Merry Hill, some two years after our original 50 per cent acquisition in 2014.
'Our ownership and asset management to date has provided us with ample evidence of the centre’s upside potential, whatever the outcome of the EU referendum.”
The retail space totals 1.7 million sq ft spread between the shopping centre (1.4 million sq ft) and adjacent retail parks (0.3 million sq ft).
Intu Merry Hill is arranged over two levels featuring 214 units, including six anchor stores, retail shops and catering units. It is anchored by Marks and Spencer, Debenhams, Primark, Next, Sainsbury’s and Asda, and is 96% occupied with a weighted average unexpired lease length of 6.7 years.
The centre has around 10,000 car parking spaces and a footfall of 22 million.