Redical has completed the acquisition of the Merry Hill retail and leisure destination for an undisclosed price.
The centre, which comprises more than 1.4m sq ft of retail, hospitality and leisure space, was put on the market last year, reportedly with a price tag of £250m+.
Merry Hill has undergone a £125m investment programme over the past few years with a new £15m leisure quarter added to the centre, which is asset managed by Sovereign Centros from CBRE.
Merry Hill, which was owned by Intu prior to its collapse into administration in June 2020, is owned by a consortium of lenders that includes Wells Fargo and Axa Investment Management.
Miles Dunnett, Merry Hill director, said: “I am delighted to announce the sale to Redical, who is absolutely the right party to continue Merry Hill’s development as the leading super regional centre in the Midlands. I am also very grateful to our outstanding team at the centre who have worked tirelessly over the last five years.
“Merry Hill now provides an excellent customer experience, with multiple new store openings, provision of great dining experiences, and many new leading leisure venues for returning and new customers to enjoy. This outcome would not have been achieved without the commitment of our existing owners, who have supported us throughout Merry Hill’s transformation, and we are very pleased we have been able to achieve this outcome on their behalf.”
Mikko Syrjanen, co-founder of Redical, added: “We are delighted to have completed the purchase of Merry Hill, an asset perfectly aligned to our strategy of creating a portfolio of core plus assets, each of which dominates its catchment, reflects the needs and wants of its consumers, and has unrealised potential.”
Petteri Barman, co-founder of Redical, said: “The centre team and the wider property asset management team have done a stellar job returning Merry Hill to its rightful place among the biggest and best-performing super regional centres in the UK. Now, together with that team and through our tech-enabled ‘transformation through accumulation’ strategy, we intend to elevate the Merry Hill customer experience even further, beginning immediately.”
Knight Frank advised on the sale and Simmons & Simmons and Pinsent Masons advised on legal matters. Redical was advised by DLA Piper, RSM and Addleshaw Goddard.
