OakNorth provides loan to Axis for Harrow shopping centre deal
OakNorth Bank has completed a £20.5m loan to Axis Retail Partners, funding the boutique’s acquisition of St George’s Shopping Centre in Harrow.
Axis previously exchanged contracts to buy the mall from RDI REIT on behalf of three LaSalle Global Partner Solutions pension fund clients in December, at a net initial yield of 8.3%.
The centre measures 215,000 sq ft and has 32 stores, along with a 12-screen Vue cinema and 669 parking spaces. Occupiers include TK Maxx, Boots, Wilkos, H&M, Nandos and Pizza Express.
OakNorth Bank has completed a £20.5m loan to Axis Retail Partners, funding the boutique’s acquisition of St George’s Shopping Centre in Harrow.
Axis previously exchanged contracts to buy the mall from RDI REIT on behalf of three LaSalle Global Partner Solutions pension fund clients in December, at a net initial yield of 8.3%.
The centre measures 215,000 sq ft and has 32 stores, along with a 12-screen Vue cinema and 669 parking spaces. Occupiers include TK Maxx, Boots, Wilkos, H&M, Nandos and Pizza Express.
The deal represents Axis Retail’s first shopping centre purchase. The boutique was formed in 2018, following a partnership between Generali Investment Holding and entrepreneurs Florencio Beccar and Toby Smith.
Smith, who is chief investment officer at Axis, said: “We have been active in the UK market for almost two years and believe that now is the right time to start investing as the market starts to recover from Covid-19, which continues to be the ultimate stress test to the sector.
“We are focusing on assets which are relevant retail destinations and that have a demonstrated track record of strong performance, a rebased rental level and offer an attractive income yield to our clients.”
Eamonn O’Rourke, director of property finance at OakNorth, said: “As the retail sector continues to recover and re-open following the pandemic, we’re keen to do more to support businesses operating in this space.”
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