A Debenhams department store in Romford has been sold to an unnamed residential developer for £12m.
Savills and CBRE sold the property, at 56-72 Market Place, on behalf of a private Irish client.
The 228,066 sq ft department store occupies a 1.37-acre site and is let on a single lease to Debenhams. It generates a total income of £845,000 per annum. Savills said prospective buyers were interested in the mixed-use redevelopment potential of the site; in particular, the potential to build flats in a town that has witnessed “significant” residential value growth in recent years.
Toby Ogilvie Smals, investment director at Savills, said: “The preparation of the asset for sale was meticulous, working with architects, planners and the council in order to present the potential for the asset in the best possible light.”
Mark Garmon-Jones, head of Savills shopping centre investment and repurposing, said: “We are seeing considerable appetite for redevelopment and repurposing opportunities as investors and developers look to unlock the latent value in retail centres and assets in Greater London and across the rest of the UK.”
Edward de Jonge, residential development director at Savills, said: “Romford offers considerable potential for master planned residential development, we expect interest and investment in this town to grow significantly with the planned opening of Crossrail in 2021.”
Jonathan Allen, residential development at CBRE, said: “The sale of 54-72 Market Place in Romford demonstrates investors’ and developers’ continued strong appetite for assets which benefit from short term income, underpinned by improving infrastructure and potential latent redevelopment value.”
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