Europa Capital has bought Land Securities' Fremlin Walk shopping centre in Maidstone for around £70m, reflecting a yield of between 8.5-8.75%.

Europa exchanged contracts to buy the 350,000 sq ft shopping centre this week for its Europa Fund III in a joint venture with asset manager SCOOP AM.

Europa last month bought Forum Steglitz shopping centre in Berlin from Hammerson for the same fund. Europa invests on behalf of more than 70 international investors from North America, Europe, the Middle East, the Far East and Australasia. Europa is also investing its fifth and sixth European property funds.

The purchase is Europa Fund III’s first retail purchase in the UK.

Land Securities had originally put the House of Fraser-anchored scheme on the market for around £100m earlier this year. The annual rental income is £6.1m.

The sale is part of Land Securities wider sale of assets to pay down debt. It is also still in the process of selling its stake in the Bullring in Birmingham.

Richard Akers, managing director for Land Securities Retail said: ‘Land Securities has undertaken over £150m worth of retail sales in the first quarter 2009/10, demonstrating the growing investor interest in well let assets.

'The proceeds will enhance the group’s strong position in regard to protecting itself through the downturn while maintaining the flexibility for future opportunistic acquisitions and the delivery of its development pipeline.’

This week Land Securities also exchanged contracts to sell the 78,000 sq ft Friary Retail Park, Plymouth to AXA for £11.5m at a 9.5% yield.

Rob Sim, head of northern Europe at Europa Capital, said: ‘We are very pleased to have secured this well let, quality investment and look forward to working with our joint venture partner to drive the scheme forward over the coming years.’

SCOOP AM is a recently established property asset management company owned by Stuart Farnell of Gemtree and Graham Cole of Guildhouse Group.

DTZ advised Europa and Franc Warwick advised LandSecs. Green & Partners advised LandSecs and Edgerley Simpson Howe & Partners advised Axa at Plymouth.