Chester shopping centre and hotel put up for sale

Receivers at CBRE have begun the sale process for the troubled Grosvenor Shopping Centre in Chester, which has been launched with a price tag of more than £21.2m. Knight Frank has been instructed to seek offers for the 245,515 sq ft centre, which fell into receivership last year. A deal at that price would reflect a blended net initial yield of 9.56% and a capital value of £86 per sq ft. It has a WAULT of 10.2 years to lease expiry. The centre is held on a long leasehold from Eaton Estate for a 150-year term, with around 125 years unexpired. The tenant line-up includes a Jury’s Inn hotel, operating under its Leonardo brand, as well as TK Maxx, Schuh and Sports Direct. The asset is being marketed with scope for various asset enhancement initiatives, including a new leisure scheme. A feasibility study has been undertaken for the delivery of a high-end food market. A former Debenhams department store is also partly within the centre’s ownership, with the remainder owned by British Land. HIG Capital had previously owned the centre before it was put into receivership last year. It bought the complex in 2015 for around £65m.   To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews