Columbus fund closes on Scottish shopping centre

Columbus fund closes on Scottish shopping centre 2010-05-25 Zoe Hughes <P><SPAN style="FONT-FAMILY: Verdana">Columbus Capital Management has acquired a 350,000-square-foot Scottish shopping centre, reportedly for a 60 percent discount from its 2007 price.</SPAN></P> <P><

Columbus Capital Management has acquired a 350,000-square-foot Scottish shopping centre, reportedly for a 60 percent discount from its 2007 price.

The firm team up with London-based investment firm Chester Properties to buy the Brandon Shopping Centre in Motherwell, near Glasgow, for a reported £36 million (€42 million; $52 million).

The property was acquired from developer Cala Properties, which originally bought the retail centre in February 2007 in a joint venture with Halifax Bank of Scotland for $128 million, according to data provider Real Capital Analytics.

The centre is the first deal for Columbus’ value-added fund, the Columbus UK Real Estate Fund, which is targeting £250 million of equity and has already closed on approximately £80 million of commitments. Columbus UK Real Estate Fund is expected to deliver a return of 15 percent.

The vehicle – managed by Columbus Capital Management, which is part of Schroder Properties’ real estate investment and asset management business – targets assets that sit “just outside” of the “current definition of prime” in the UK, Columbus managing partner Joe Froud recently told PERE.

In a statement today, Froud said the Brandon centre had 91 units, with an average unexpired lease term of roughly 14 years.  Chester Properties’ vehicle, Chester Properties Investment Partnership, has also held a first close on £40 million of equity.

Montagu Evans and Douglas Stevens & Co acted for Chester Properties. GVA Grimley acted for CALA Properties.