Peel confirms Trafford Centre sale

Peel has reached agreement with Capital Shopping Centres to sell its prized 1.9m sq ft Trafford Centre for £1.65bn in exchange for a 19.9% stake in CSC.

The deal involves an equity purchase price of £747.6m for the Trafford Centre, which attracts 35m customer visits annually, and a £77m cash payment by Peel, in return for shares and bonds in CSC.

Based on CSC's 30 June 2010 net asset value per share of 368 pence, the deal values the Trafford Centre at £1.6bn, taking into account the Trafford Centre's net debt of £798m, which mostly comprises long-dated amortising commercial mortgage backed securitisation notes, and other net liabilities of £54m. The valuation is a 3% discount to the 1 November 2010 external valuation of £1.65bn.

John Whittaker will become deputy chairman of the CSC board, in addition to his current role as chairman of the Peel Group.

The Trafford Centre will join CSC's 13 shopping centre including: the Arndale Centre, Manchester; Lakeside, Thurrock; Metrocentre, Gateshead; Eldon Square, Newcastle; Braehaead, Glasgow; and The Mall at Cribbs Causeway, Bristol.

Whittaker said: "The transaction is part of the Peel Group's long term, ongoing strategy to broaden its investments in many diverse sectors through partnerships and co-investment with complementary businesses. It follows successful partnerships with RREEF at Peel Ports, Vancouver Airport Services at Peel Airports, Covanta at Ince Park and most recently with SIS Live at Peel's MediaCityUK project."

The existing management team and Trafford Centre staff will remain in place.

Whittaker added: "It is business as usual at the Trafford Centre. The strength of the centre lies not only in its unrivalled retail and leisure experience, but also in its first-rate management and excellent staff. The Trafford Centre remains one of Peel Group's prized assets under the new ownership structure, which gives us the additional opportunity to benefit from added geographical spread of high quality assets in the wider UK retail property market."

Your Comments

Read our comments policy

Now that the Arndale and TC are in the same ownership, will this put an end to the City Centre vs Trafford centre row (and spark some life in to the tram link?)


My belief is that they will look to sell the Arndale Centre now they have the Trafford Centre. No sense in competing against yourself!!

By Anon

Does this mean the Trafford Centre will start to look as bad as the Arndale Centre!

By Jules

Related Articles

Sign up to receive the Place Daily Briefing

Join more than 13,000 property professionals and receive your free daily round-up of built environment news direct to your inbox


Join more than 13,000 property professionals and sign up to receive your free daily round-up of built environment news direct to your inbox.

By subscribing, you are agreeing to our Terms & Conditions and Privacy Policy.

"*" indicates required fields

Your Job Field*
Other regional Publications - select below