A new joint venture between LaSalle Investment Management and Quadrant Repurpose has acquired Hersham Green shopping centre in Surrey.
The property comprises a Waitrose supermarket and 15 retail units together with 223 surface car parking spaces, and was purchased from clients of Aviva Investors for just over £17m, reflecting a net initial yield of 5.18%.
The occupational leases expire in four years which will enable a comprehensive redevelopment of the site to be undertaken once planning consent is secured.
On behalf of Aviva Investors, Jonathan Heptonstall ommented: “We are delighted to have secured the sale of this scheme on a tight timetable, in line with our client’s strategy”.
LaSalle Fund Manager, Tom Hill, commented: “This opportunity is exactly what we are seeking to secure for our UK pension fund client with a joint venture with Quadrant Repurpose – short-term income of three to five years with the probability of value-add through the application of our combined development expertise”.
Quadrant Repurpose Co-Founder Chris Daniel added: “We are delighted to have secured such an attractive South East development opportunity to launch our new joint venture with LaSalle”.
Co-Founder Mark Phillipson added: “It’s great news and we are already seeking further repositioning opportunities of a similar nature to add to our growing pipeline”.
JLL represented Aviva Investors. Quadrant Repurpose and LaSalle were advised by Colliers and Montagu Evans.