Pramerica Real Estate Investors has signed a £44.1m agreement to fund the first phase of Development Securities’ six-acre regeneration of Shepherd’s Bush Market.
The site has outline consent for a £150m mixed-use project, including a refurbished market, 211 homes and 14,000 sq ft of retail and leisure space.
The funding from Pramerica, acting on behalf of its investors, will finance the purchase from Transport for London of the majority of the market holding, enabling the redevelopment of the first phase of the scheme.
A joint venture between DevSec and Orion Land & Leisure, known as Orion Shepherds Bush Ltd, is carrying out the project.
Subject to the successful conclusion of an inquiry in Q2, compulsory purchase orders will secure vacant possession of the remaining part of the site, allowing the redevelopment to commence in the summer.
DevSec executive director Matthew Weiner said: “Today’s announcement is a significant milestone for the project which will enable us to progress our plans and start redevelopment later this year. Shepherd’s Bush Market is an important and historic London asset and our plans for redevelopment seek to preserve and enhance its significance. This is a complex development which illustrates our core strength in creating value through real estate regeneration. We are excited by the benefits that the redevelopment will bring to this part of west London.”
Orion Land & Leisure chairman Richard Olsen said: “Our scheme in Shepherd’s Bush is a prime example of regeneration on underutilised land in London and my partners and I are delighted to have the opportunity to be working with Pramerica Real Estate Investors. Securing the funding and taking control of the market represents a significant milestone in this complex project and underlines our commitment to delivering a scheme of outstanding quality for west London.”
Andrew Moffat, Pramerica’s head of UK residential, said: “We are pleased to be supporting this quality joint venture and to provide our clients the opportunity to benefit from participating in the regeneration of Shepherd’s Bush Market.”
chris.berkin@estatesgazette.com
