Property news - Warner joins up with bank to bid for Preston mall

Warner Estate Holdings has formed a joint venture with the Bank of Scotland to bid£47.5 million for Burford's Fishergate Shopping Centre at Preston in Lancashire.

The 30,000 sq m mall is the largest retail development in Preston. It was developed by Scottish Amicable in 1987 and recently refurbished by Burford.

The four-storey centre is anchored by Debenhams, TJ Hughes and TK Maxx.

The net rental income is£3.5 million a year, representing a net initial yield of 7 per cent. Following rent reviews, income is set to rise to£3.7 million, representing a reversionary yield of just under 7.5 per cent.

Warner's portfolio in the Northwest region consists of six schemes worth more than£210 million.