Leumi UK has completed £26.3m of senior term lending to Magnetar to support the acquisition of two retail schemes in Huddersfield and Sale, marking the fourth and fifth transactions between the parties.
The specialist real estate lender has provided an £18.4m facility for the purchase of Kingsgate Shopping Centre in Huddersfield, alongside a £7.9m facility for the acquisition of Stanley Square in Sale.
The transactions continue an established funding relationship between Leumi UK, Magnetar and Northdale Advisors, which is acting as operating partner for the US-based alternative asset manager’s UK retail strategy.
KINGSGATE AND STANLEY SQUARE ACQUISITIONS
Kingsgate Shopping Centre extends to more than 280,000 sq ft of fully enclosed retail accommodation and is described as the dominant retail destination in Huddersfield town centre. The scheme is 94% occupied and generates annual footfall of approximately 4.7 million.
The asset is anchored by The Light leisure complex, JD Sports, Boots and TK Maxx. Huddersfield town centre is currently subject to a long-term regeneration programme, supported by more than £1bn of public and private funding focused on transport infrastructure, leisure amenities and public realm improvements. This includes a £7m capex investment into the Light unit at Kingsgate.
Stanley Square (pictured), by contrast, is an open-air retail and leisure scheme located in the centre of Sale. The property is 97% let and anchored by convenience-led occupiers including Boots, Home Bargains and PureGym.
Sale has undergone significant regeneration since 2019, with new public realm works and shopfront improvements. The addition of Classrooms, a serviced office concept located on the first floor of the scheme, has further diversified the tenant mix and reinforced the town’s role as a commuter location for Manchester city centre.
ONGOING SPONSOR RELATIONSHIP
Aidan McKeown, portfolio manager at Magnetar, says: “We are pleased to again partner with the team at Leumi UK, which has demonstrated a strong understanding of the retail sector and a dedication to finding tailored solutions.
“These acquisitions complement Magnetar’s existing UK retail portfolio, as both assets are high-occupancy, dominant centres with strong operating fundamentals and a stable, diversified tenant base driving consistent and predictable cash flows.”
Jon Taylor, partner at Northdale Advisors, adds: “The Huddersfield and Sale assets are very attractively located and benefit from a strong tenant mix.
“With our planned asset management initiatives – alongside recent regeneration works locally – we expect both retail destinations to thrive.”
Anya Stanislawczyk, relationship director at Leumi UK, says: “These transactions further demonstrate our ongoing commitment to building trusted, long-term relationships with our sponsors, while working closely with them to find financing solutions that enable them to achieve their objectives.
“Backed by dominant town-centre positions, diversified income streams and Magnetar and Northdale’s hands-on approach to asset management, both assets are well positioned to deliver resilient income and long-term value.”
