Orchard Street Investment Management has exchanged contracts with Warner Estate Holdings to buy the Royals Shopping Centre, Southend.

Orchard Street is paying £30.7m and the sale is due to complete on 27 March 2009. It is thought the price reflects a 9% yield.

The proceeds of the sale will be used to reduce Warner’s debt.

The 279,000 sq ft shopping centre in Southend has been on the market since last year and Catalyst Capital had bid to buy the scheme.

Its tenants include Boots, Primark and Debenhams and H&M.

Orchard Street also recently completed the purchase of 100,000 sq ft Belvedere office block in Manchester.

DTZ advised Warner.