Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

Redefine Int buys English retail mall

11 Nov 2013

Redefine International PLC, which is listed on the London Stock Exchange and on the Johannesburg Stock Exchange, has secured a significant transaction with Aviva Commercial Finance Limited.

Weston Favell Shopping Centre in Northampton, England.

Redefine International has agreed revised arrangements with Aviva with respect to the Company’s UK shopping centre portfolio.

The transaction will substantially reduce Redefine International’s see through loan-to-value ratio, from circa 64 percent to circa 57 percent, and see it acquire the 307 763sqft two storey Weston Favell Shopping Centre in Northampton, England.

Michael Watters, chief executive officer of the Redefine International Group, says this transaction not only produces a significant reduction in Redefine International’s leverage ratio, but is expected to be earnings accretive from day one.

The shopping centre is dominant in its local area and will benefit from our long-term focus on delivering income through focused asset management activity.”

Once complete, it will result in a restructuring of the Aviva debt secured against Grand Arcade Shopping Centre in Wigan and West Orchards Shopping Centre in Coventry.

Weston Favell is an enclosed shopping centre situated on the edge of Northampton, anchored by one of the largest Tesco Extra supermarkets in the UK at 156 987sqft, with a 14.3 years unexpired lease term. The centre has a total of 56 retail units and seven kiosks let to a variety of national and local retailers. 

“The centre, which produces a net rental income of £6.4 million a year, was acquired on a net initial yield, after acquisition costs, of 7.2 percent,” says Watters.

Watters says the key investment attractions include the centre’s dominance in the wider catchment, the lack of supermarket competition in the north east of Northampton and the strength of the Tesco covenant, which accounts for 53 percent of the net passing rent.

Print Print
Top Articles
The jewel in the crown of the Cape Winelands, Franschhoek offers a variety of property options from apartments to luxury estate homes and guesthouse farms. Take a look...

Watch the under-R3m market where most of the action will be, especially in secure estates, while R3m to R5m properties offer good long-term prospects at huge discounts.

Cape Town still tops the list of most desirable property locations, with nine of SA's top 10 suburbs in the Mother City and 50 sales ranging from R20m to R60m over past year.


Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.

Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724