Isis Property has injected its Castle Mall shopping centre in Norwich into the Mall Fund, the limited partnership set up by Capital & Regional and Morley Fund Management. The deal values the centre at£115 million and Isis has taken units in the fund to this value, giving it a 19.8 per cent stake.
The deal takes the Mall Fund's portfolio to more than£1.1 billion in 14 UK locations. Isis is the fourth institutional investor in the fund, joining Prudential, Norwich Union and the Hanson Industrial Pension Scheme.
Castle Mall was developed by Isis Property (then Friends' Provident) in 1993. It comprises 400,000 sq ft (37,160 sq m) in 80 units and tenants include Virgin Megastore, Boots, H&M, Oasis, New Look and Argos, as well as an eight-screen Ster Century cinema and a 920-space car park.
Isis Property director of property funds Richard Kirby said: 'Castle Mall is one of our most successful shopping and leisure destinations in the region, but it is also one of the fund's largest single assets. It is in policy holders' interest for us to invest in a spread of assets, ensuring that we are not overly exposed in one property or area.
'Moving Castle Mall into The Mall Fund allows us to achieve this while continuing to maintain a strong presence in the buoyant shopping centre market and retaining an indirect interest in the future performance of Castle Mall.'
Isis Property was advised by Strutt & Parker and Dalgleish advised the Mall Fund.