Halladale sells Baytree Centre

The price reflects a net initial yield of 4.78%.

Halladale has owned Baytree since February 2002 when it bought it for £7.25m in joint venture with Bank of Scotland Corporate. It bought the freehold interest in the property in June 2004 for £9m from Brentwood Borough Council, who also granted Halladale planning consent for a redevelopment of the centre.

Since then, Halladale has completed a complex and extensive redevelopment of Baytree and it now comprises 31 shops totalling 135,470 sq ft (12,585 sq m). Baytree was officially re-opened in December 2005 and incoming tenants included Wilkinsons, Somerfield, WH Smith, Body Shop, Baby Gap, Bon Marche and FOPP.

Halladale was advised by Jackson Criss and Colliers CRE and the purchaser was advised by Awbrey Lapsa.

David Lockhart, chief executive of Halladale, said: ‘The Baytree Centre has been a highly rewarding project for the joint venture. The successful conclusion of the extensive redevelopment of Baytree demonstrates Halladale’s excellent track record of asset management and development. We have taken advantage of strong market demand for first-rate retail assets thereby realising significant value for our co-investment partner and delivering strong returns to our shareholders.’

Phillip Rhodes, chairman of O Twelve, added: ‘This acquisition provides further scale in terms of the retail assets owned by the company and brings to a conclusion a very successful year of acquisition activity. We have now exchanged or completed on over £160m of acquisitions since the launch in March 2006 and we are very pleased with the mix and quality of O Twelve’s portfolio and the speed at which we have invested shareholders’ funds.’