Preston shopping centre placed into administration

Updated: Preston's St George's Shopping Centre has been placed into administration after its owners reportedly defaulted on a loan.

The 280,000 sq ft shopping centre is home to many established retailers and food and drink outlets, including Body Shop, Burger King, Costa, H&M, Pandora and River Island. 

The shopping centre was acquired by private equity firm InfraRed Capital Partners through its Active Fund III from Aviva Investors for £73m in 2015.

InfraRed, which also owns a number of other shopping centres across the country, is believed to have defaulted on a loan secured against the Preston property.

Alexander Williams and Andrew Dolliver of Ernst & Young LLP have been appointed as joint administrators to IRAF UK Dragon Limited Partnership, IRAF UK Dragon Nominee 1 Limited and IRAF UK Dragon Nominee 2 Limited. The three are listed as owners of the shopping centre.

Alex Williams said: "The administration of the partnership and the companies will have no operational impact on St George's Shopping Centre which continues to trade in compliance with government Covid regulations on a business as usual basis.”

The property managers (Munroe K) and asset managers (Sovereign Centros) of the shopping centre remain in place fulfilling their existing roles.

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