Capital & Regional has exchanged contracts on its £130m purchase of The Kingfisher Centre in Redditch.

The retail and leisure investment company, backed by Oaktree Capital Management, said the acquisition of the 1m sq ft retail scheme will complete later today.

The Kingfisher Centre is being bought from clients of Scottish Widow Investment Partnership at a net initial yield of 8%.

Anchor retailers include Debenhams, M&S, Primark, Next, Arcadia and TK Maxx as well as an Apollo cinema. It produces net rental income of £11m with Zone A rents of between £65/sq ft and £75/sq ft.

Capital Regional is contributing £10.6m to the purchase and Oaktree will pay £42.4m - representing stakes of 20% and 80& respectively.

Royal Bank of Scotland and Santander will provide an £86m, five-year debt facility.