Land Securities has exchanged contracts to acquire The Cornerhouse, Nottingham from BP Pension Fund in an off-market transaction for £50m. The property was acquired at a net initial yield of 6.6% after expiry of a rent free period.
The 225,000 sq ft Cornerhouse is the only purpose built leisure scheme in the City of Nottingham and is anchored by a 14 screen Cineworld – the City’s sole multiplex. It benefits from a steady flow of visitors from the nearby universities, shopping facilities at Victoria Centre and Upper Parliament Street, and local theatres. In addition to the cinema, The Cornerhouse also includes 11 restaurants, two bars, a nightclub and a casino.
Richard Akers, Executive Director, Land Securities said: “The acquisition gives us a presence in one of the key cities in the UK. Leisure is a vital element of our retail portfolio and will continue to be so as we see consumers demand increasingly sophisticated and dynamic destinations.The Cornerhouse is a vibrant destination in Nottingham city centre featuring a range of key brands and it is going to play a part in strengthening our retail business.”
Jones Lang LaSalle advised Land Securities; AHBN advised BP Pension Fund.