Delancey is selling the Shop Stop, the retail parade attached to Clapham Junction station, SW11, for around £100m – a circa 4% yield.
The 70,000 sq ft retail-led, mixed-use scheme at the entrance to Clapham Junction station on St John’s Hill, SW11, is a major redevelopment opportunity. It is currently home to tenants including M&S Simply Food, MAC cosmetics and Monsoon as well as a 14,000 sq ft gym let to Fitness First and a 5,000 sq ft Sainsbury’s.
The property also contains office space on the first and second floors with additional basement parking. The entire site extends to around 2.5
acres.
JLL has been instructed to market the opportunity. It is the first time in 18 years that it has been put up for sale.
Clapham Junction is the UK’s busiest railway station in terms of interchanges. It handles around 430,000 passengers a day – 135,000 of which are in the morning and evening peaks. The station is proposed to be a Crossrail 2 station.
Clapham is part of the mayor of London’s housing zones and has been allocated around £12m of GLA funding.
The opportunity is likely to attract global capital.
Delancey previously owned Shop Stop in its joint venture with Landsec, the Metro Shopping Fund, but became sole owner of the property after buying out Landsec in April 2017 for around £50m.
The decision to sell forms part of Delancey’s strategy to direct resources into other development projects. The development element of Stop Shop could last at least 10 years.
Delancey also sold out of Southside shopping centre in Wandsworth, SW18, when it sold its 50% share in April 2017 to Invesco Real Estate for £150m. It also owned the south London retail asset in conjunction with Landsec as part of the Metro Shopping Fund. The sale marked its exit from the vehicle.
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