Frogmore has completed its purchase of the four-building Notting Hill Unit Trust in west London for £219.3m, as revealed by Estates Gazette.
Pears Group and LaSalle Investment Management sold the 171,000 sq ft estate, which is made up mostly of shops, restaurants, offices, car parking spaces and a cinema.
The deal reflects a 3.2% net initial yield for the 3.11-acre freehold estate.
The pair bought the estate from Land Securities and Delancey in 2010.
The estate is let off low rents. More than 80% of the total income is derived currently from retail occupiers.
Frogmore has acquired the estate to reposition and refocus the retail, office and residential offering.
Pears Group managing director Jonathan Rose said: “We have implemented our five-year business plan and wish Frogmore and its team every success with this first-class asset.”
The Notting Hill Gate Estate is the fourth acquisition for FREP III, Frogmore’s third fund. It comes after the fund’s purchase of West One Retail Park, Eccles, Manchester, last month; 2 Millharbour, E14, where the scheme has recently been granted consent for 901 residential units; and Weston House, WC1, an office-led refurbishment project.
Frogmore was advised by CWM and Everton Phillips. The Pears Group and LIM were advised by Savills.
