Southend Council buys shopping centre
Southend-on-Sea Borough Council has bought a 333,538 sq ft shopping centre in the Essex town for £10m.
The Victoria Centre on Chartwell Square has around 100 shops, with tenants including Wilko, Next and Metro Bank.
The purchase, which reflected an 11.3% yield, represents the council’s first substantial commercial property acquisition on the high street.
Southend-on-Sea Borough Council has bought a 333,538 sq ft shopping centre in the Essex town for £10m.
The Victoria Centre on Chartwell Square has around 100 shops, with tenants including Wilko, Next and Metro Bank.
The purchase, which reflected an 11.3% yield, represents the council’s first substantial commercial property acquisition on the high street.
Southend aims to invest in the shopping centre, both with potential internal modifications and exterior improvements. It is also exploring the scope to include public services in the centre, to improve accessibility to services and to help to drive footfall.
The centre last changed hands in 2016 for more than £24m.
Ron Woodley, deputy leader of the council and cabinet member for transport, capital and inward investment, said: “The Victoria Centre is key strategic property acquisition for us. While the income will cover the borrowing cost of buying it, its strategic value is what’s important to us.
“It offers future regeneration benefits and a real opportunity to make a positive impact on the high street and town centre area.”
Nick Mumby, partner at Gowling WLG, which provided legal advice on the deal, said that taking ownership of “an important asset in the town centre” will help the council “regenerate the high street and surrounding area”.
The acquisition comes after the council partnered with Citizen Housing to develop a build-to-rent residential scheme, which will in turn enable the construction of a new stadium for Southend United FC.
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