Sale of Shrewsbury shopping centre trio completes

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UK Commercial Property Trust, managed by Ignis Asset Management, has completed its purchase of three shopping centres in Shrewsbury this week.

The Darwin, Pride Hill and Riverside centres are thought to have been bought for around £61.1m — a 6% initial yield and an 8% equivalent yield.

The centres were being sold by special servicer Hatfield Phillips, advised by Savills.

Owner Protego’s UK Actively Managed Shopping Centre Fund lost control of the centres last autumn, when Hatfield Phillips was appointed as special servicer to the loan provided by Lehman Brothers. The loans were held in the securitized Windemere XI-X vehicle.

Chalkhill Partners, a boutique investment bank, said that given a negative mark-to-market on the swap of £5m, and fees, it expected the sale price to result in a loss of more than £20m.

It said: “The Class E notes are likely therefore to be written off in full, together with a significant portion of the Class D notes.” It said it was awaiting confirmation of the strategy for the other defaulted loan, Westville.

As revealed by Property Week, UK Commercial became frontrunner to buy the schemes in November and is working with Guy Shearer’s Shearer Property Group, which will asset manage the centres with Ignis AM. twentyretail acted for UKCPT.

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