Spalding’s Holland Market has been sold for £21 million in an “off market” transaction – but there is still optimism about the future of the retail park.
Corbo sealed the deal with Schroder UK Property Fund (SPF) last month after reports of the company making a loss of more than £135m in the year to January 2013.
However, only last June Corbo renewed its commitment to investing in the site despite “turbulent” times in the retail industry.
It unveiled revised plans to turn round existing shops in Holland Market, such as Argos, B&Q and Halfords, so they are facing the town centre.
Although SPF is not ready to reveal its plans for the retail park, it described Spalding as “a major Lincolnshire market town with an affluent catchment area” and said occupants B&Q, Halfords, Wilkinson, Argos and Marks and Spencer were “strong national multiple retailers and minimum or low risk tenants”.
James Lass, fund manager of Schroder UK Property Fund, commented: “We are delighted to have secured these two properties on an off-market basis. The improving economic environment is beginning to feed through into retailer confidence so we believe these purchases are well-timed.
“The assets fit in with our long-standing strategy of acquiring well-located real estate, where occupier demand is strong. We see numerous asset management opportunities in both properties.”
Phil Scarlett, president of Spalding Chamber of Trade, said: “The main thing to take from the sale is it happened because of the strong occupier demand.
“If the potential for investment was there there is every reason to believe it will be in the future.”