Capital & Regional and Morley Fund Management's Mall Limited Partnership has bought the 20,000 sq m Grosvenor Centre in Chester from Equitable Life for£105.8 million.
The net rental income last year was around£6 million and the purchase shows an equivalent yield of 6.8 per cent. Analysts believe there is potential to increase the value of the centre by equalising rental values - which range from£60 to£170 Zone A - across the scheme.
The Grosvenor Centre, which is the city's dominant covered shopping centre, opened in 1965 and was refurbished in 1996. More than 70 retailers are represented.
It is the first acquisition by The Mall Fund since its launch in February last year. It now has 12 shopping centres under management with a total value of£830 million.
The Mall chief executive Ken Ford said: 'The Grosvenor Centre enjoys strong retailer and shopper demand and represents many opportunities to introduce Mall brand standards to both shopper facilities and marketing promotions.'
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