DTZ Investors has sealed the £137m deal to buy Delancey’s Shop Stop retail parade at Clapham Junction station, on behalf of Strathclyde Pension Fund.
Parties previously exchanged contracts on the 70,000 sq ft retail-led parade in June, for a price reflecting a net initial yield of 2.99%. It was placed under offer in May, as previously revealed by EG.
Earlier this year Delancey instructed JLL to seek bids of around £100m for the scheme, which would have reflected a circa 4% yield.
The site presents a highly significant redevelopment opportunity, especially since Clapham Junction has more railway interchanges than any other station in the UK.
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, plus basement parking.
Delancey previously owned Shop Stop in a joint venture with Landsec, called the Metro Shopping Fund, but became sole owner after buying out Landsec in April 2017 for around £50m.
Fawcett Mead advised DTZi on the transaction.
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