Magnetar acquires Kingsgate Shopping Centre
Huddersfield’s 280,000 sq ft retail destination has been sold to the US-based asset manager for £32m, in a deal facilitated by Cushman & Wakefield acting for vendor WD, and LM Real Estate representing the buyer.
The centre attracts more than 4.7 million visitors annually and generates around £4.5m of gross income a year. Northdale Advisors will act as operating partner to Magnetar in the UK. Funding of £18.4m of senior debt was provided to Magnetar by Leumi UK.
Kingsgate was put on the market in June last year, with a price tag of £36.25m. Developed in 2002 and owned by WD since, anchor tenants include The Light, Sports Direct, TK Maxx, soon to be joined by Boots.
The sale comes ahead of the opening of phase one of the town’s Our Cultural Heart regeneration programme, which is being delivered by BAM and is expected to open this summer, consisting of the new library and food court, with a public square.
Peter Everest, chief executive of WD, said: “This is the end of our 30-year involvement with Kingsgate. From its original construction and through a changing retail landscape, it has evolved into a diverse retail and leisure centre that will be the heart of Huddersfield for years to come.”
Josh Vernon, partner in Cushman & Wakefield’s retail capital markets team, said: “This is a fantastic outcome for our client, and we are delighted to see Kingsgate change hands.
“Since launching to the market, the asset has generated a significant amount of attention from investors due to its clear potential and opportunities to grow revenue.
“This includes building on the strong leasing activity taking place within the centre and enhancing the F&B offering to create a leisure quarter.
“The strong depth of interest clearly demonstrates the broadening appeal of the shopping centre investment market.”
John Griffin, joint managing director and head of investment at LM, said: “We have been supporting Northdale Advisors since 2022, helping them to acquire a number of value-add assets with strong opportunities for active asset management and income growth.
“This purchase is a great example of that strategy in practice, with its evolving leisure offering and the potential to further enhance the scheme to support the wider ‘cultural heart’ regeneration being delivered by Kirklees Council.”
