Eastgate Shopping Centre sold to Galliard Homes
Posted by UK Property Forums on 28th April 2023 -
The Eastgate Shopping Centre in Basildon, Essex has been sold following a drawn-out administration process.
Galliard Homes and DVS Ground Rent bought the centre from InfraRed UK for an undisclosed fee after the firm entered administration in November 2022.
Galliard Homes says it wants to deliver “a successful and sustainable Eastgate shopping centre”.
The company has a reputation for towering and eye-catching housing developments, such as the glistening and twisting 45-storey Baltimore Tower on the Isle of Dogs and the futuristic under-construction 37-storey Shoreditch block known as The Stage.
Approved plans for the part-demolition of the Eastgate to build 2,800 homes made the centre appealing to developers, as any new application on the site would likely be approved as principal development has already been agreed.
Toby Ogilvie Smals, director of retail investment at Savills, who acted as agents for the seller, said: “We had good interest and a good number of offers for the asset, it was a competitive process.
“With the big empty former Debenhams store, it was difficult from an income perspective, which is why developers were more competitive in bidding.”
A Galliard Homes spokesman said: “We are committed to working closely with the existing tenants and the local authority to ensure that the centre remains a vibrant and thriving hub of activity. We will not be pursuing the existing residential consent and we recognise the importance of the centre to the local economy and are committed to support its growth and development.
“The consortium brings together a wealth of experience and expertise in property development, management and investment. We are confident that our collective skills and knowledge will enable us to deliver on our promise of securing the long-term future of the centre, while also creating new opportunities for the community and driving economic growth in the wider region.”
InfraRed purchased the shopping centre from property firm British Land for £88.6m in 2014.
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