Drum Property Group has agreed terms to sell the Buttermarket centre in Ipswich to the National Grid Pension Fund for £54.7 million.
Drum Property Group acquired the Buttermarket centre for £9.2 million in March 2015 in a 50:50 joint venture with Capital & Regional. Since then £25 million has been invested to transform it into a new retail and leisure destination and social hub in the heart of Ipswich.
The redevelopment has seen the introduction of a new state of the art 12-screen Empire cinema, which is due to open on 31 March 2017, and a new family dining offer which includes brands such as Byron Burger, Coast to Coast, New Look, Prezzo and Wagamama. The restaurants opened from Summer 2016 and continue to trade well.
Drum and Capital & Regional have also introduced a new 20,000 sq ft Pure Gym, which has increased footfall in the town centre, and secured long-term commitments from national retailers New Look and TK Maxx which now occupy larger units in the centre. The works have also included the re-modelling of the St Stephens Lane entrance to create a new piazza area.
Following the sale, Drum Property Group and Capital & Regional will continue to work with National Grid Pension Fund to complete the leasing of the centre.
Graeme Bone, Group Managing Director, Drum Property Group said: “Buttermarket provided an exciting opportunity for Drum and Capital & Regional to reposition and redevelop the shopping centre into a leisure and retail venue that local residents could be proud of, and one that would attract operators and brands that will drive footfall and spend in the centre of Ipswich.
It is another example of Drum’s dynamic approach to risk controlled development and we are delighted to have completed the sale of this transformative project.”