Ownership of Eastgate Shopping Centre transfers to Austrian bank
By James Young | 22nd March 2019
The ownership of Gloucester's Eastgate Shopping Centre has transferred to an Austrian Bank, according to reports.
The Eastgate Centre forms part of what is called the Tiger Portfolio - a collection of five UK shopping centres - purchased by private equity firm Lone Star in 2014.
But according to bisnow.com, Lone Star has ceded control of the portfolio due to falling values of the assets with its main lender, Austrian bank BAWAG, taking control.
Jason Robinson, manager for Eastgate Shopping Centre said that the he didn't expect the news to have a massive impact on the shop floor.
"We haven't seen any detail as matters like this sit with our asset management company, Ellandi," he said. "As far as we are concerned it's business as usual."
Lone Star, an American private equity firm, purchased the Tiger Portfolio from Rockspring in 2014 for £260million.
At that point, it contained two other centres - in Gateshead and Grays in Essex - which have since been sold.
It is believed that Lone Star were trying to sell Eastgate and the other four centres but were unable to before the portfolio was taken over by BAWAG, who have assumed the majority of the debt.
Punchline understands that Gloucester City Council looked at the possibility of purchasing the Eastgate Shopping Centre in the last two years, but decided against making the move.
Punchline has contacted Ellandi for a commment on the reports.
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