DTZ Investors is nearing a circa £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, located at the entrance to Clapham Junction Station on St John’s Hill, SW11, has been placed under offer for a price that reflects a yield of around 3.25%.
Delancey instructed JLL earlier this year to seek bids of around £100m for the scheme, which would have reflected a circa 4% yield.
The scheme represents a major redevelopment opportunity and will benefit from being part of the UK’s busiest railway station in terms of interchanges.
Clapham Junction handles around 430,000 passengers a day and the station is proposed to be a Crossrail 2 station.
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 with additional basement parking.
The entire site extends to around 2.5 acres. Developer Sovereign Centros is advising on the asset management of the scheme.
Delancey previously owned Shop Stop in a joint venture with Landsec, called 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.
Fawcett Mead is understood to be advising DTZi.
All parties declined to comment.
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