Festival Place shopping centre leasehold put up for sale

Festival Place's long-term leasehold interest is up for sale, providing an investment opportunity for potential buyers.

To clarify, this does not mean the shopping centre itself is for sale, the freehold of the site belongs to the council - think how a pub is owned by a brewery but has a landlord run the place.

International real estate advisor Savills is marketing the opportunity to acquire the long leasehold interest in Festival Place Shopping Centre in Basingstoke, on behalf of receivers BDO.

READ MORE: 'Exciting' new bowling alley AND buffet restaurant to open in Festival Place

Festival Place (Image: Savills)

Festival Place, which comprises 1,127,629 sq ft over 20 acres, dominates the commercial core of the affluent London commuter town.

Key anchor tenants include Marks & Spencer, Next, and H&M, with other prominent occupiers such as Superdrug, Apple, Nando’s, Sports Direct, Five Guys, TK Maxx and Vue Cinema.

The scheme benefits from a strong Weighted Average Unexpired Lease Term (WAULT) of 5.76 years, with 4.36 years to break.

SEE ALSO: Festival Place placed in receivership, but 'it's business as usual' says director

Significant asset management initiatives are already advanced by Sovereign Centros with new lettings to Superbowl and Hans Buffet in 16,750 sq ft and 10,000 sq ft respectively.

There is also strong demand for the former Debenhams space, which spans three levels and 107,014 sq ft.

There are considerations around introducing a mix of new exciting retail and leisure uses, aimed at enhancing dwell time, footfall and customer spend.

Mark Garmon-Jones, Director of Retail Investment at Savills, said: "We are delighted to be working with receivers and Sovereign Centros, as asset managers, to market this dominant shopping and leisure scheme in the South East.

"It presents significant asset management opportunities, driven by strong tenant demand and performance."