Development Securities has completed a sale of its majority interest in Market Place in Romford, Essex, to Henderson Global Investors for £12.3m, reflecting a 6.96% yield.
The company bought Market Place, together with adjacent office building Tollgate House, in July 2013 for £8.3m from administrators acting on behalf of Lloyds Banking Group.
Henderson has bought the retail element of the mixed-use scheme, which comprises around 80,000 sq ft of shops.
DevSec has already sold off all but two of the scheme’s 91 flats generating £4.7m.
The neighbouring Tollgate House, which has also been refurbished to provide 8,100 sq ft of offices and 2,500 sq ft of shops, will be sold off separately.
Matthew Weiner, executive director at DevSec, said: “Since acquiring Market Place, we have significantly increased the value of this asset through development and refurbishment works. The development benefits from a town centre location within easy reach of Romford station, which will be linked to Crossrail in 2018.
“The sale of Market Place to Henderson will allow us to recycle equity into further development and investment opportunities where we can add value through a process of regeneration.”
