Commercial Finance Specialists

Property development giants Land Securities has sold Corby town centre and Willow Place to Helical Bar for £70 million.

Land Securities bought the town centre site in 2005, extending the shopping and leisure commercial development to 700,000 sq. ft with Willow Place only two years later. The deal represents a net yield of 8%.

The centre comprises both residential accommodation and 146 retail units, which include Primark, TK Maxx and Wilkinson in the larger units, as well as Argos, Blockbuster, and major high street fashion brands.

The Managing Director for Retail at Land Securities, Richard Akers, suggested that after strengthening the town's retail arm, it was time for further projects. "The center and asset teams have done a tremendous job in elevating the offer and shopping experience. Now, the time is right for us to sell it, recycle the capital and reinvest the funds in new opportunities", he stated.

This news comes as property consultants Cushman & Wakefield predicted a grim outlook for shopping centre property development in the UK. Only a single commercial development, Trinity Walk in Wakefield, was added to the market in the first six months of 2011.

Cushman & Wakefield expects completions of commercial developments to slow dramatically in 2012. Trinity Leeds and the Tesco Centre in West Bromwich are expected to open in 2013.

That Land Securities are looking to recycle and invest capital from their proceeds, then, may offer positive news in light of this assessment.