Price slashed for Hemel Hempstead shopping centre

Agents have been appointed to find a buyer for the long leasehold of a shopping centre in Hemel Hempstead, Hertfordshire, for £19.8m. Asset manager Aberdeen Standard Investments has instructed Lunson Mitchenall to market the leasehold of the Riverside Shopping Centre as an “investment and development opportunity”. Aberdeen Standard manages the centre on behalf of Middle Eastern investor Akaria Investments, which owns the leasehold, according to Land Registry and historic legal filings. The price tag has more than halved in recent years, with the centre having been touted for sale for more than £40m in 2017. A deal at £19.8m would represent a 10% yield and a capital value of £78 per sq ft. The centre is held on a 150-year lease from the freehold owner, Dacorum Borough Council. The 288,000 sq ft centre has 21 shops and is anchored by Debenhams. Other tenants include H&M, Topshop, Next, Waterstones and a 113-bedroom Premier Inn. Marketing materials highlight the potential for redeveloping the site as a mixed-use scheme. Indicative plans have been worked up for 760 homes, 34,220 sq ft of commercial space and 393 car parking spaces. Total net income at the centre currently tallies around £2.1m per annum. Gross income is £2.5m, some 32% of which is generated from the Premier Inn and the car park. The scheme has a WAULT of 3.6 years to break and 7.6 years to lease expiry. Riverside opened in 2005 as an extension to the Marlowes shopping zone. All parties declined to comment. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette