'Transforming the asset into one of the most successful shopping centres in the region': Abbey Centre sold in £58.8m deal to Forestside owners
The Abbey Centre in Newtownabbey, has been sold to The Herbert Group of Companies in an off market transaction...just days after Frasers Group acquired Tower Centre in Ballymena
The owners of the Forestside shopping centre in south Belfast have expanded their retail property portfolio with the acquisition of another major retail property in Northern Ireland.
The Abbey Centre in Newtownabbey has been sold by London-based investment trust NewRiver REIT to The Herbert Group of Companies for £58.8 million in a significant off-market deal.
The Herbert Group, owned by Belfast couple Michael and Lesley Herbert, also acquired the Bloomfield Shopping Centre in Bangor for £22million last year.
Spanning 320,000 sq ft, the Abbey Centre is one of the region’s premier retail hubs, home to over 70 retailers, a food court, and a doctor’s surgery. The centre boasted a 99% occupancy rate at the time of sale.
Since acquiring the site in 2014, NewRiver has undertaken a string of major initiatives to reposition the centre. Highlights include The creation of a new 44,000 sq ft flagship store for Next; re-anchoring the scheme through the delivery of an upsized Primark into a former BHS unit; upsizing Danske Bank to a new flagship branch and creating a new external unit for Greggs; and creating larger spaces for River Island, Poundland, The Works and Superdrug.
The £58.8m sale reflects a net initial yield of approximately 9%, indicating strong investor appetite for well-performing retail assets in the UK regions.
NewRiver chief executive Allan Lockhart, said: "This off market sale of Newtownabbey is a great example of our specialist platform capabilities, from our disciplined stock selection to transforming the asset into one of the most successful shopping centres in the region and then securing a successful exit at book value.
"Capital recycling is one of our growth drivers and we believe the success of our asset management initiatives has extracted the maximum value from this asset.
"We remain on track with other disposals and so whilst this sale brings our LTV to below our guidance, in due course we expect to recycle our capital into opportunities with superior income and capital growth potential. This sale also demonstrates the continuing improvement in investor demand for UK shopping centres."
The transaction comes just days after Frasers Group acquired Tower Centre in Ballymena, another major retail destination in Northern Ireland, suggesting renewed confidence in the province’s retail property market.