UPDATE: 10.20am

The Kingsway is set to welcome a gym to the site and 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 licensing application notice for Sainsbury's at a unit in the Kingsway Centre has already been made public.

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.

NEWPORT'S Kingsway Shopping Centre has been bought by the firm behind the Friars Walk redevelopment.

Queensberry Real Estate (QRE) has completed on the purchase of the 250,000sq ft (23,226sq m) Kingsway Centre, home to stores like Wilkinson's, B&M and Peacocks, from the UBS Triton Fund for an undisclosed sum with new joint venture partner Bywater Properties.

Queensberry already has a significant presence in Newport City Centre with the development of the 390,000sq ft (36,232sq m) Friars Walk, opening autumn 2015.

Paul Sargent, chief executive of QRE, 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 complement  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.”