Buttermarket Shopping Centre, Ipswich
Regeneration of a pure retail shopping centre into a new mixed-use retail, leisure and entertainment destination.
Client
Capital & Regional/Drum Property Group
Value
£17m
Services
Architectural design and delivery
The 235,000sf Centre was 57% vacant and in decline and in response, LK2:
- Provided a holistic retail, leisure and value enhancement strategy and innovative solutions to realign the Centre.
- Created a strong retail core anchored by TK Maxx and New Look with an uplift of Zone A rent and retail sales.
- Created a new leisure and F&B destination with a 14 screen Empire cinema, a 20,000 sf Pure Gym and nine restaurants, cafes and bars.
The scheme was designed and constructed over two years and has become a vibrant retail and leisure destination, contributing to the Ipswich town centre regeneration and night-time economy. Acquired for £9.2m, it was sold to the National Grid Pension Fund for £54.7m with a 40% IRR and 6% yield.
“The completion of such a complex and transformational project in just a two year period is a great showcase and the IRR we have delivered is a strong testament to the success of the investment. This disposal provides us with significant capital to reinvest into higher yielding opportunities”.
Hugh Scott-Barrett, Chief Executive CapReg