Arch Northumberland scored its largest acquisition to date with the £78M purchase of Manor Walks Shopping Centre in Cramlington.

The 350k SF shopping centre, anchored by Sainsbury’s, Asda, Wilkinson and Vue Cinema, was bought from Hammerson. The price reflects a yield of 7.1%.

Arch intends to improve and extend the centre to provide bigger, better retail and leisure facilities and additional car parking.

Arch Northumberland chief executive Peter McIntyre tells Bisnow the purchase made sense to Arch’s overall business model, which focuses on reinvesting profits from commercial activities to support economic and social development across Northumberland. The company holds a £216M portfolio of commercial and residential properties that maximise financial returns for its shareholder—Northumberland County Council.

Arch won the deal ahead of strong competition from institutional property investors, and the transaction was concluded in just three weeks from agreeing to terms to signing the contract.

BNP Paribas Real Estate and DWF’s national head of real estate, Toby Askin, and partners Adam Heather and Lorraine Reader repped Arch. Savills repped Hammerson.