Preston city shopping centre sold for £87m
Preston's St George's shopping centre is under new ownership after an £87m deal.
The centre has been snapped up by the Aviva Investors Property Trust, one of the largest property investors in Europe, backed by cash from the insurance giant, from former owners The Mall Fund.
It is more than likely the buy-out will see The Mall name dropped with the centre reverting to the St George's Shopping Centre.
Traders in the centre gave the new owners a cautious welcome but admitted they did not know what changes the deal would bring.
Ian Finch, 41, manager of Timpson, said: "It is about getting people back in.
"It is nothing like what it used to be.
"There is no way the same amount of people are coming through now.
"The rents are that high for businesses that they want to come in but they cannot keep up with the rents."
Robin Carter, 55, who has run the Original Art Shop in the centre since 1988, said: "The Mall has been a very good landlord and they have done a lot for the centre.
"They have marketed it and promoted it over the past 10 years."
Mr Carter said he hopes the new owners will continue in the same vein.
He said: "We would want more of the same.
"Keep getting the right tenants to draw people in."
Peter Jackson, owner of Peter Jackson the Jeweller, said: "The new owners are pretty unknown, we will have to wait and see.
"I have nothing but praise for the way The Mall ran the centre.
'Supportive'
"If the new owners can maintain the standards of maintenance, cleanliness, security, marketing and management that The Mall did, I shall be very pleased and maybe they can make it even better.
"The new owners will not be managing the centre, they have employed management agents."
Wendy Harrison, 41, owner of O'Briens sandwich shop, said: "We have not really been informed, apart from people coming to measure up.
"They (The Mall) have been very supportive and very helpful to me.
"The management team has been very helpful but I will be glad when it is all finalised because there has been uncertainty.
"You do not know what changes they are going to impose or conditions, rent.
"Lets hope they spend some money."
Grace Lee, of accessory store Yi, said: "It really doesn't affect us, there is no difference for us.
'Positive'
"The new people coming in can bring some good ideas and changes."
Shop owners have received letters informing them that property agents Cushman and Wakefield will take over managing the centre following the deal.
Babs Murphy, chief executive of the Preston-based North and Western Lancashire Chamber of Commerce, said: "Aviva is a well-established company and has a good reputation as an employer.
"In light of the economic downturn this is a positive sign for the future and the retail centre in Preston."
The St George's Centre, which is home to major high street names including Marks and Spencer and Miss Selfridge, had been subject to an 85m bid from Orchard Street Investment Management.
But that deal fell through after Aviva came in with a rival offer which is still 17.5m less than they paid for in 2004.
Richard Daffern, a partner at law firm Pinsent Mansons which advised Aviva, said the deal was closed in "less than a month."
He said: "This is a great acquisition for the fund as this is the prime scheme in Preston, a UK top 40 city."
Capital and Regional, a co-investor which manages centres owned by The Mall Fund, announced the deal to the stock exchange on Tuesday.
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Weather for Preston
Thursday 29 July 2010
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