British Land has acquired a 50% stake in Eden Walk shopping centre, Kingston Upon Thames, for £41.5m – a net initial yield of 5.35%.
British Land purchased the property from the Universities Superannuation Scheme (USS), which will continue to hold the remaining 50%. This is the second joint venture between the two companies, which are currently working together to develop the Whiteley shopping centre in south Hampshire.
EG revealed in April that USS was seeking a joint venture partner for Eden Walk.
Eden Walk is a 276,000 sq ft shopping centre with 22 units and six offices, anchored by Marks & Spencer, Boots, Sainsbury’s and BHS.
Charles Maudsely, head of retail at British Land, said: “We are delighted to extend our successful relationship with USS and secure a key, strategic asset with extremely strong underlying fundamentals and significant development potential, increasing British Land’s exposure to the Greater London market. Kingston’s superb catchment and shopper profile offer huge potential and British Land has the ability, experience and the right strategy to deliver an exceptional world-class town centre development.”
Graham Burnett, head of property at USS, said: “We are very pleased to be able to extend the successful relationship with British Land. Our combined skills will enable us to capitalise on the strength of the existing asset.”
British Land and USS are developing the 300,000 sq ft new-build Whiteley shopping centre in Hampshire, which is already 76% prelet/under offer and is due to open in spring 2013. The scheme will comprise more than 50 units totalling 242,000 sq ft of retail space, 58,000 sq ft of restaurants, cafés and other facilities and 1,136 free car parking spaces. M&S, Next and Tesco will anchor the scheme, with other prelets including H&M, Boots, JD Sports, Bank, Sports Direct, Frankie & Benny’s and Starbucks.
CBRE acted for British Land and USS was represented by Jones Lang LaSalle and Morgan Williams.
sophia.furber@estatesgazette.com
