Weston Favell Shopping Centre has been sold in an £84 million deal.
The centre, which has an annual footfall of more than seven million people, was placed in receivership in January, but manager Kevin Legg said at the time that he wasn’t concerned about its future.
And his confidence was well-founded, as the centre has been sold by Aviva to property investors Redefine International.
Redefine said the key attractions include the centre’s “dominance in the wider catchment area, the lack of supermarket competition in the north east of Northampton and the strength of the Tesco covenant.”
Redefine International chairman Greg Clarke said: “The Weston Favell Shopping Centre is dominant in its local area and will benefit from our long-term focus on delivering income through focused asset management activity.”
Mr Legg said: “I am delighted the centre has attracted Redefine International, who I am confident will provide the vision and drive to deliver an improved shopping experience the public of Northampton expect and deserve.
“This is the start of a very exciting future for all stakeholders, including our existing tenants and customers, as well as future retailers who I am sure will want to be part of the continued success that is Weston Favell.”
The sale is part of what has been described as a “complex debt restructuring arrangement” with Aviva.
Redefine and Aviva have agreed to restructure the loans secured against Grand Arcade in Wigan and West Orchards in Coventry, and buying Weston Favell is part of this deal.
It is paying £37 million to repay the debt against West Orchards and another £7 million to pay off 50 per cent of the debt secured on Grand Arcade.
Aviva is providing a £50 million loan to part-finance the purchase of Weston Favell Shopping Centre.
Weston Favell is the second major Northampton shopping area to be sold this month.
The sale of St James Retail Park in Northampton for £53.25 million was announced on October 8.