International real estate advisor Savills, on behalf of receivers BDO, has sold the long leasehold interest in Festival Place Shopping Centre in Basingstoke to MDSR Investments for a gross price of £99.1m. MDSR Investments were advised by CBRE and Estama.
BDO business restructuring partners Tony Nygate, Kiri Holland and Lee Causer were appointed as fixed charge receivers of Festival Place on 12 May 2023. The receivers have since executed a plan to maximise value, working closely with asset managers Sovereign Centros to complete more than 80 leasing transactions to increase the occupancy rate, with 24 new entrants to the centre.
Additionally, a major leisure initiative has been advanced, with new lettings to Superbowl and Hans Buffet in 16,750 sq ft and 10,000 sq ft respectively. There is also strong demand for the former Debenhams space, which spans three levels totalling 107,014 sq ft.
Comprising 1,127,629sq ft set over 20 acres, Festival Place dominates the commercial core of the affluent London commuter town. Key anchor tenants include Marks & Spencer, Next, and H&M, with other prominent occupiers such as Superdrug, Apple, Nando’s, Sports Direct, Five Guys, TK Maxx and Vue Cinema. The scheme benefits from a strong Weighted Average Unexpired Lease Term (WAULT) of 5.76 years, with 4.36 years to break.
Mark Garmon-Jones, Director of Retail Investment at Savills, commented: “We are delighted to have completed the sale of Festival Place to MDSR Investments. The property provided the purchaser with an opportunity to acquire an asset with significant future potential. There are already considerations around introducing a mix of new exciting retail and leisure uses, aimed at enhancing dwell time, footfall and customer spend.”
Tony Nygate, Partner at BDO, added: “Following a comprehensive two-year strategy to improve and maximise the value of Festival Place, we are pleased to have completed the sale and achieve this outcome for creditors.”
