Legal & General Property has brought a raft of shops in the heart of Croydon town centre to the market.
L&G is selling the property at 60-70 North End and 100/108 and 1103/1109 Whitgift Centre for around £50m.
However, the fund manager is expected to achieve significantly more for the 69,100 sq ft property as Hammerson and Westfield battle for control of the redevelopment of the Whitgift shopping centre.
The property is a combination of freehold and long leasehold from the Whitgift Foundation.
The block is let to fashion retailer H&M, which fronts the North End and Whiftgift mall. Other tenants also include Footlocker, Superdrug and Wallis on the ground floor and Card Factory and Headmasters on the first floor.
Whitgift Foundation, which owns the shopping centre freehold and 25% of the long leasehold, appointed Westfield to lead a redevelopment of the town centre in November 2011. However, IBRC and Royal London Asset Management, which own the remaining 75% of the long leasehold, selected Hammerson as their development partner in April 2012.
In the latest twist, L&G’s proposed sale comes as IBRC, formerly Anglo Irish Bank, prepares to market its equity and debt interests secured by the leasehold of the Whitgift mall.
A sale to Hammerson or Westfield would give the successful bidder control of the long leasehold.
A final application decision by Croydon council on Hammerson’s and Westfield’s plans is expected in early 2013.
Jones Lang LaSalle is acting for L&G.
annabel.dixon@estatesgazette.com
