Abu Dhabi Investment Authority has bought Criterion Capital’s Queensmere and Observatory shopping centres in Slough, Berkshire, from clients of Criterion Capital for £130m. The price reflects a yield of around 5%.
The two adjacent centres total 660,000 sq ft. Wellington House, a 57,400 sq ft office building next door and a 1,300 space car park are also included in the deal.
Catalyst Capital has been appointed as ADIA’s asset manager for the scheme. Queensmere has consent for a 130,000 sq ft extension and 675 homes.
Criterion had owned the Queensmere and Observatory since 2006 when it bought them from British Land for £200m – a 5.4% yield.
Karl Elliott, head of portfolio at Criterion Capital, said: “This timely disposal allows us to realise some value on behalf of clients having already achieved planning consent for a significant redevelopment opportunity. It also follows the recent disposals of other non-core assets such as East India Dock and the St Nicholas Centre as part of our ongoing strategy to focus on our growing build-to-rent and leisure portfolios.”
Cushman & Wakefield acted for ADIA. Savills acted for Criterion Capital.
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