The Only Investor To Buy A Shopping Centre This Year Explains Why It Took The Plunge

There has essentially only been one proper shopping centre deal in the UK this year. One.

A couple of small development opportunities changed hands in Q1. But Cale Street’s purchase of a 50% stake in Intu Derby for £186M in April is basically the only game in town for the moribund sector.

Investors have steered clear because of the uncertainty over rental income created by the regular flow of tenant administrations and company voluntary agreements. Just this week, restaurant chain Jamie’s Italian went into administration, closing 20 stores, and M&S indicated it could close up to 150 stores over the next few years. If you don’t know what the income for a centre is going to be, it is very hard to work out what you should pay for it.

So what made Cale Street invest where others fear to tread? Cale Street founding partner Wilson Lee explained the firm’s thinking at Bisnow's London Capital Markets Review event. It came down to careful underwriting, creative deal structuring, lack of competition and an acceptance that investors in retail are going to…

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Prospect Of Corbyn Government Means This Global Investor Is Avoiding The UK

Private equity firm KKR is raising capital for its second European real estate opportunity fund. But for the time being it won’t be spending any of that in the UK. There has been a slowdown in London and…

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Private Equity Firm Oaktree Retail Loan In Default