CARPHONE WAREHOUSE co-founder David Ross started to dismantle his property empire yesterday with the £240m sale of the Drake Circus shopping centre in Plymouth.
Ross’ firm Kandahar sold the mall to British Land at a net initial yield of six per cent, the buyer said in a statement yesterday.
Kandahar hired property consultants Jones Lang LaSalle and Briant Champion Long last September to advise on options for the company, which breached its banking covenants in December 2009.
There were several parties interested in purchasing the entire company at one stage, but Ross has resorted to selling off properties in an effort to pare losses.
Kandahar and JLLS declined to comment yesterday, while Briant could not be reached.
British Land, the UK’s second largest real estate trust, already owns several shopping centres around the UK including Surrey Quays mall in Rotherhithe and the 1.5m square foot Meadowhall centre in Sheffield.