Kettering shopping centre goes on the market for £8.5m

Kettering s Newlands Shopping Centre is up for sale with a price tag of £8.5m.

The Gold Street centre, which houses more than 30 stores, has been put on the market by real estate firm Savills on behalf of owners Ellandi and Tristan Capital.

It comes just 10 years after they had bought the near-200,000 sq ft site for a whopping £32.5m.

The centre is anchored by TK Maxx, whose lease expires in 2025, and hosts other big name stores including Boots, H&M and Poundland.

The sale also includes office building Lahnstein House, which is accessed from inside the shopping centre. Savills says the office space offers opportunities for refurbishment, "boosting rental prospects". They also say the overall price tag reflects a net initial yield of 13.5 per cent.

Toby Ogilvie Smals, director in the investment team at Savills, said: “This is a fantastic opportunity to acquire a dominant town centre shopping scheme, let to a strong mix of national retailers and further benefiting from the additional office building.

"The occupational story at Newlands has proved buoyant, in spite of the economic challenges, and with further local authority investment planned for the town, we expect to see good levels of interest.”

The centre was built in 1977 when it was first called the Newborough Centre, initially housing a Sainsbury's in what is now TK Maxx.

The shopping centre changed its name when an expansion took place just over a decade later.

In recent years the Newlands has seen some big name closures and additions.

In 2016 WH Smith shut up shop, later being replaced by popular clothes store H&M.

Closing down signs went in the window of Dorothy Perkins last year, with M&Co suddenly closing overnight in August.

Both Ellandi and Newlands centre manager Neil Griffin have been contacted for comment.