F&C REIT has exchanged contracts for the acquisition of shopping centres in Barnsley and Middlesbrough in a club deal totalling £108 mln (EUR 126 mln). The acquisition marks a blended net initial yield of 8.6%.

London-based F&C REIT is partnered in the deal by two new investors and existing clients ESAS Holding (Turkey),

The assets were acquired from Capital and Regional's Mall Fund and include the Alhambra Centre in Barnsley and the Cleveland Centre in Middlesbrough. Both assets have a combined net income of £9.5 mln.

The Alhambra Shopping Centre totals 180,000 sq ft (16,700 m2) and is Barnsley’s only covered shopping complex, housing 41 retail units. The Cleveland Centre is Middlesbrough’s largest mall, totalling 400,000 sq ft and is located in the heart of the city. The complex is home to tenants including Boots, Bhs, New Look, H&M and Top Shop.

F&C REIT and its clients were advised by Franc Warwick and Olswang LLP.

F&C REIT manages a global portfolio worth £7.8 bn on behalf of a wide range of individuals, professional investors, property trusts and institutional clients. The company is active in Germany (Munich), India (Mumbai), Ireland (Dublin), Sweden (Stockholm) and the UK (London).