Construction of the scheme is expected to begin in July 2002 with completion scheduled for 2005. The bulk of the payment will be triggered when the centre reaches practical completion and is 70 per cent let, and the agreed price has been based on a target rental income of £18 million ($26 million) per annum.
The 510,000-sf mixed-use project will be anchored by a House of Fraser department store and include a further ten large stores and over 80 shops, restaurants and cafes as well as 115 residential units.
Capital Shopping Centres Managing Director John Abel said: 'There is a scarcity in the United Kingdom of high quality retail assets which meet our requirements. Chapelfield represents an extremely well planned and designed development, which is located in a strong regional catchment area. This is an excellent opportunity for Capital Shopping Centres to add to our current portfolio of prime retail centres in the UK.'
CSC is already the UK's leading owner of shopping centres with regional malls at Lakeside in Essex, Braehead in Glasgow and the MetroCentre on Tyneside. It also owns major city centre malls in Nottingham in Stoke-on-Trent and suburban schemes in Watford, Uxbridge and Bromley in London.
Chapelfield is Lend Lease's fourth scheme in the UK, after Bluewater--Europe's largest shopping mall at Dartford, Kent--Overgate in Dundee, Scotland and Touchwood in Solihull, West Midlands. Its previous schemes have been financed through a limited partnership of leading UK institutions. Chapelfield will be the first time that Lend Lease has taken a traditional developer/trader role in the UK.
Lend Lease Europe Director David Hutton said: 'Retail in the UK remains a core focus of Lend Lease, and we will continue to work alongside leading property companies and investors in creating, delivering and managing large retail assets.'
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