DTZ Investors has clinched a £130m deal to buy Delancey’s Shop Stop retail parade at Clapham Junction station on behalf of Strathclyde Pension Fund.
The 70,000 sq ft retail-led parade was recently placed under offer for a price reflecting a yield of around 3.25%, as previously revealed by EGi.
Parties have this week exchanged contracts, but the final terms and price could potentially change in the meantime.
Earlier this year, Delancey had instructed JLL to seek bids of around £100m for the scheme, which would have reflected a circa 4% yield.
Fawcett Mead advised DTZi on the transaction, while developer Sovereign Centros is advising on the asset management of the scheme. All parties have yet to comment.
The scheme represents a highly significant redevelopment opportunity, buoyed by being part of the UK’s busiest railway station.
Clapham Junction, also proposed to be part of Crossrail 2, handles around 430,000 passengers a day.
Tenants include M&S Simply Food, Sainsbury’s, Moss Bros and Monsoon, as well as Fitness First, which occupies a 14,000 sq ft gym.
The parade also includes office space on the first and second floors, plus basement parking.
Delancey previously owned Shop Stop in a joint venture with Landsec, called the Metro Shopping Fund, but became sole owner after buying out Landsec in April 2017 for around £50m.
The sale is part of Delancey’s strategy to direct resources into other development projects.
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