Trio of Shrewsbury shopping centres bought out of receivership
The £61 million sale of a trio of shopping centres in Shrewsbury town centre has marked the largest deal out of receivership this year in the Midlands.
The Darwin, Pride Hill and Riverside Shopping Centres have been acquired by UK Commercial Property Trust in a deal brokered by GVA Grimley following its appointment by the receiver.
GVA was appointed September last year when previous owners Protego’s UK Actively Managed Shopping Centre Fund lost control of the of properties. The LPA Receiver appointment was made by London-based Hatfield Phillips - the special servicer to the loan - which was originally provided by Lehman Brothers in 2006.
Greg Judd, director of GVA Grimley and head of the firm’s Midlands Corporate Recovery team and LPA Receiver for Shrewsbury Shopping Centres said: “We are delighted to have completed this major transaction within six months of being appointed as the LPA Receiver.
"Shrewsbury is a vibrant county town and the trio of centres is very popular, however, the properties were purchased at the height of the market in 2006 and the level of debt was unable to continue to be serviced.
“During the last decade, the number of large shopping centres that were bought for high values is significant, with many deals having taken place at what we now know to have been the height of the market.
"We are currently appointed as the LPA Receiver of a number of other major shopping centres across the country, such as Merseyway Shopping Centre in Stockport, Swinton Shopping Centre near Manchester, Cherry Tree Shopping Centre in Wallasey and Cannock Shopping Centre in Staffordshire.
"While the sale of Shrewsbury Shopping Centre currently represents the largest deal out of receivership in the Midlands during 2010, there will be more transactions to follow, as the property market deals with the effects of a painful recession.”