A new joint venture between LaSalle Investment Management and Quadrant Repurpose has acquired Surrey’s Hersham Green Shopping Centre for just over £17m in a redevelopment play.
The property, bought from clients of Aviva Investors, comprises a Waitrose supermarket, 15 stores and 223 surface car parking spaces. The deal reflects a net initial yield of 5.18%.
The occupational leases expire in four years’ time. The jv said this will enable a comprehensive redevelopment of the site to be undertaken, once planning consent is secured.
Chris Daniel, co-founder of Quadrant Repurpose, highlighted that the new jv has been launched with “an attractive South East development opportunity”.
Tom Hill, fund manager at LaSalle IM, said: “This opportunity is exactly what we are seeking to secure for our UK pension fund clients 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 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.”
Jonathan Heptonstall, head of high street retail at JLL, which acted on behalf of Aviva Investors, said the sale was secured on “a tight timetable, in line with [its] client’s strategy”.
Colliers and Montagu Evans advised Quadrant Repurpose and LaSalle IM.
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