The Kingsway Centre in Newport city centre has been bought by Queensberry Real Estate and Bywater properties for an undisclosed sum.

The 250,000sq ft Kingsway Centre, home to Wilkinsons, B&M and the city's central Post Office, is immediately adjacent to Queensberry's 390,000sq ft Friars Walk development which is currently being built and is set to open in autumn 2015.

Paul Sargent, chief executive of QRE, told Business Argus that Bywater was the main buyer and Queensberry would be acting as the asset manager of the Kingsway Centre.

He said the plans for Friars Walk would not be altered to incorporate the Kingsway Centre but that the two retail offerings would sit well side by side.

He said: "The Kingsway is mainly a discount offering. We are prepared to put money into the centre, which is something the previous owners UBS Triton Fund didn't have the appetite for.

"We have got an active investment plan to attract tenants to the Kingsway Centre," he said.

A new gym is set to be opening soon and there is also speculation that a major supermarket will be taking one of the units at the Kingsway Centre in the near future. A licencing application notice for Sainsbury's at a unit in the Kingsway Centre has already been made public.

Mr Sargent said: “This is the first of a number of similar acquisitions we hope to be involved with over the next 12 months – a strategic purchase that will both compliment and leverage off the growing success of Newport city centre’s retail story.

“Newport is the obvious place for us to start as investors due to our in depth knowledge of the city and its catchment, and we see great opportunity in the synergies with Friars Walk moving forward. Together with Bywater we can deliver a holistic approach to Newport’s retail offer and add further momentum to the wider regeneration of the city.”

Theo Michell, director of Bywater Properties, said: “The Friars Walk development has brought top retailers back into Newport City Centre, and Kingsway is already seeing the knock-on benefits from this renewed occupational demand. The retail offer of the City is set to go from strength to strength. We, together with QRE, are delighted to be part of Newport’s retail-led regeneration.”

Strutt and Parker acted for the vendor while QRE / Bywater were represented by Stuart Cunliffe.