Acquisition of £7.4m shopping centre in Armagh

17th April 2014

Development Securities exchanges contracts to acquire shopping centre in Armagh, Northern Ireland for £7.4 million

Development Securities today announces that it has exchanged contracts to acquire The Mall Shopping Centre in Armagh, Northern Ireland for £7.4 million. Built in 1998, The Mall is a covered shopping centre anchored by a 49,000 sq. ft. Sainsbury's foodstore with a nine-year unexpired lease term that provides 65% of the total income. In addition, the shopping centre includes 12,000 sq. ft. of retail space let to a range of local and national retailers.

Net operating income is £748,000 per annum with a net initial yield of 9.43 per cent. The vacancy rate is low, at 4.4 per cent by floor area.

Matthew Weiner, Development Securities said: "With a number of disposals having recently been made, we are continuing to recycle our capital into further real estate opportunities where we can add value. The Mall is an established and popular shopping centre in Armagh that offers good asset management and enhancement options and some scope for further development on site. Within our investment portfolio, we have a number of regional, foodstore-anchored retail schemes and this latest acquisition supports our activities in this market."

For further information, please contact:

Matthew Weiner/Lucy Grimble, Development Securities PLC

020 7828 4777