Melburg buys shopping centre with planning permission for a £100m scheme
Permission was granted for the development of 420 homes in 2019
- What? Melburg Capital is buying Broadwalk Shopping Centre in Knowle for around £9.5m
- Why? 5.3 acre site has redevelopment potential
- What next? Outline planning permission is already in place to build 420 homes on part of the site
Melburg Capital is buying a shopping centre on the outskirts of Bristol with planning permission in place for a £100m residential-led scheme, React News can reveal.
The UK investment manager is understood to have agreed a deal to buy Broadwalk Shopping Centre in Knowle out of receivership for around £9.5m.
Located two miles south east of Bristol city centre, the 5.3-acre site is currently dominated by the shopping centre, which comprises around 218,500 sq ft of retail and leisure space.
However, outline planning consent was secured in 2019 to knock down the multi-storey car park and part of the shopping centre to make way for 420 new flats as well as 124,000 sq ft of commercial space.
Broadwalk Shopping Centre is not the only shopping centre in Bristol that looks set to be converted for residential use. Last year, Sovereign Housing Association bought the Clifton Down Shopping Centre from BlackRock for £27.2m with the intention of drawing up plans to develop new housing.
Broadwalk was part of a portfolio of three shopping centres, which also included Belle Vale Shopping Centre in Liverpool and Port Arcades in Ellesmere Port, that Frogmore acquired for more than £130m in 2006.
Administrators at Moorfields Advisory Group were appointed in 2017 over the portfolio following the settlement of a legal dispute between Frogmore and its lender Nationwide, which had sold the loans secured by the centres to Cerberus as part of the Project Carlisle loan portfolio in 2014.
Melburg Capital is no stranger to the Bristol market. The real estate investment and development company already owns the mixed use asset 15-33 Union Street and office development 360 Bristol.
Knight Frank advised on the sale.
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