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Investors go Christmas shopping in £45m deals for Stafford's Riverside and Odeon schemes

By Simon Penfold | Stafford | News | Published:

Stafford's Riverside shopping scheme and the neighbouring cinema and restaurant development have been sold in a pair of deals totalling more than £45 million.

Building work is under way on the Odeon in Stafford, which has been sold as part of £45m worth of property deals

Both sites were owned by Jersey-based property investment group LXB Retail Properties.

It's Riverside investment has been sold to a pair of trusts managed by Legal & General, which is also the buyer of its Odeon cinema site.

It follows LXB's sale of the Kingsmead development to Triple Jersey two years ago.

Chief executive Tim Walton said: "The sale of Riverside and Bridge Street at Stafford represents a further significant step in effecting an orderly disposal of the group's remaining assets and once the sale of the leisure element is completed, concludes the group's activities in Stafford."

Stafford's Riverside shopping centre opened last year and has now been sold by its developer

LXB revealed it had exchanged contracts on Thursday for the sale of its Riverside investment, which is let to 13 retailers: M&S, Primark, New Look, River Island, Outfit, Zizzi, JD Sports, Greggs, Vision Express, H&M, Costa, Acapella and Save our Soles.

The £100 million Riverside complex opened last summer creating, around 600 jobs, after a three year long development and building project. Three of the 18 units remain empty.

The sale is expected to complete on around January 23 for £35.9m.

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LXB will receive £10.2m in cash after repaying £25.7m of bank borrowings secured on the investment.

At the same time LXB exchanged on the sale of its leisure investment at Bridge Street, Stafford to Legal & General .

This development will comprise approximately 53,600 sq ft and will be anchored by a six screen Odeon cinema with seven restaurant units, two of which are open and let to Nando's and Frankie & Benny's.

The building construction is scheduled for completion in the summer/early autumn of next year.

Under the terms of the deal, the initial purchase price, estimated at £8.9m will be paid on completion of the lease to Odeon and will be based on the restaurant lettings in place at the time. Further payments will be made as new restaurants move in.

LXB estimates that letting the remaining five restaurant units could result in subsequent payments totalling up to £4.8m.

Simon Penfold

By Simon Penfold
Business Editor - @SPenfold_star

Business Editor based at the Express & Star's head office in Wolverhampton, looking for stories big & small.

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