£24.8 million, at a 7.68% net initial yield, from clients of PRUPIM.
The Waterside has 120,000 sq ft anchored by Primark, New Look, Top Shop & Oasis with a current void level of 5% .The weighted average unexpired lease term is 7.1 years. It is built on 2 levels, the High Street level and the Waterside level alongside the river/ canal, around a central food court.
The acquisition is expected to complete in a fortnight and just over half the purchase price will be funded by a new four year non-recourse bank facility, with the balance being met by existing cash resources.
Capital and Regional has usually acted in the past with a co-investing partner, previously Aviva with The Mall and Junction funds and AREA Property Partners for it's German portfolio. In this case it is a new 50:50 joint venture between Capital & Regional and Karoo Investment Fund II (Karoo), a Luxembourg investment Fund.
Hugh Scott-Barrett, Chief Executive of Capital & Regional said: "This is an exciting acquisition for Capital & Regional as we move to deliver on our growth strategy for the company."
"Waterside is a classic C&R centre where we can apply our revenue focussed retail management skills to create the right space and trading environment for retailers and deliver good returns for our shareholders We are pleased to be able to invite Karoo to work with us on this project. The creation of the joint venture with Karoo is also an important step in providing us with further funding capacity for new deals , as well as providing us with a source of management fees and potential performance fees above target returns of at least 15%. We are actively looking at other similarly attractive opportunities."