British Land has exchanged contracts to buy Royal Victoria Place in Tunbridge Wells from Hermes for £96m.
The deal is expected to complete next month. Hermes bought the shopping centre from Westfield in 2012 as part of a £159m portfolio deal, which also included Castlecourt shopping centre in Belfast and the Friary in Guildford, Surrey.
In July last year the investment manager revealed plans for a 142,625 sq ft retail and leisure extension to Royal Victoria Place. The extension forms part of a broader £70m redevelopment of the scheme by Hermes, which will also include a 30,300 sq ft cinema. The plans have been approved by Tunbridge Wells Borough Council.
Since owning the property Hermes has also secured new tenants including Wilko and Smiggle.
The decision to sell forms part of Hermes wider asset management and investment strategy. It also recently sold its 5% stake in Bluewater shopping centre in Kent to Royal London Asset Management.
Charles Maudsley, Head of Retail, Leisure & Residential at British Land, said: “We’re focused on ensuring our portfolio and the space within it reflects the way retail is changing, both in terms of how people are choosing to shop and how retailers do business.
“Key to this is providing high-quality space which enables retailers to effectively showcase their range, facilitate transactions and support fulfilment, while also recognising that shoppers increasingly wish to combine retail outings with other leisure activities.
“Our acquisition at Tunbridge Wells is in line with that approach. This is a well-located, high quality mixed use asset which presents a real opportunity to drive further value and returns, as we apply the extensive asset management, operational retail and placemaking expertise we have within British Land.”
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