Sovereign Housing Association has bought a Bristol shopping mall and car park from BlackRock UK Property Fund for £27.2m.
The acquisition, which covers three acres of land, represents the biggest commercial property in Sovereign’s portfolio. A local residential building and smaller surface car park have also been acquired as part of its investment.
The association will use the income generated from owning the Clifton Down centre and adjacent land to deliver additional affordable housing across the south of England, as well as improve existing homes. The centre was built in the early 1980s.
Tom Titherington, executive development and commercial director for Sovereign, which has 60,000 homes, outlined Sovereign’s ambition to take “more of a land-led approach”.
“This is a retail-led, mixed-use investment and is a really exciting opportunity for us as a business,” he said.
“The income will allow us to increase our development programme, and in the medium to long term there is the potential to redevelop the site to create a sustainable major mixed use development to include affordable and market housing.”
James Gibson, development director, said: “It is the largest commercial investment owned by Sovereign and it is really good news for the business, especially in the current climate.”
The deal comes as BlackRock UK Property Fund seeks to reduce the fund’s retail exposure.
Savills advised Sovereign; Knight Frank acted for BlackRock.
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