Fremlin Walk Shopping Centre
Acquired by Scoop from Land Securities for £69 million in a joint venture with Europa Capital LLP
Fremlin Walk was acquired by Scoop from Land Securities for £69 million in a joint venture with Europa Capital LLP. At the time the Centre had a significant number of voids and a vacancy rate of 20%, largely as a result of a dysfunctional leasing strategy, poor tenant mix and a number of retailer insolvencies.
An intensive, hands-on approach aimed at stabilising and then increasing net operating income, refining tenant mix and mitigating vacancies, rectifying defects and improving centre marketing, tenant liaison and communications with customers over a twenty-one month period followed, with a clear ambition to reposition the Centre and enhance capital value. A string of new lettings were secured and a thorough audit of the service charge identified areas where savings could be made, with the benefit passed on to tenants. Minor defects in the legal title were also attended to.
Such intense action ensured the property was capable of on-sale within a short time frame. Capitalising on improved investor sentiment, an opportunistic sale to Legal & General was secured for c.£94 million. The investment produced an equity IRR in excess of 50% and a near doubling of equity capital invested.