The Prudential is still bagging shops for its investment portfolio. In Scotland it has agreed to pay £26m for the Princes Square Shopping Centre in East Kilbride ­ with 850,000 sq ft, Scotland's largest covered shopping centre. Seller of the newly developed centre is Princes Square Development, a joint venture between Grosvenor Estate Holdings and HBG Properties. All but eight units have been let to tenants including Disney, Ortakers, Bay Trading, Sports Soccer, Spoils and McDonald's. Current rent roll is around £1.25m a year. Once fully let, reckons the Pru's Bob Mogford, the yield will be around 6%. Letting agents for the remaining units are Healey & Baker and Smith Cole Wright. Prudential was represented in the purchase by Wright & Partners. Meanwhile, the Pru has completed the purchase of the freehold and long leasehold interests in 197/213 Oxford Street ­ to the east of Oxford Circus. The building was previously owned and occupied by Littlewoods which after moving out has rejigged the space and achieved lettings to Next, Superdrug and Books Etc. Next is already trading and Superdrug and Books Etc are expected to open their doors in May. Etam occupies the fourth and fifth floor office. Purchase price of £69.5m reflects an initial yield of just over 5.6%. Next and Superdrug are believed to be paying rents based on £240/sq ft respectively (Zone A) while Superdrug's sub-tenants are reported to be paying a whopping £462 (Zone A). The Pru's Michael Hulme considers that the continuing improvements along this stretch of Oxford Street should ensure "strong performance over the coming years". Chapman Petrie and Churston Heard acted for Littlewoods while the Pru was advised by Lunson Mitchenall. {{PROPERTY }}

Topics