Morley Fund Management has exchanged contracts to forward purchase Thornfield Developments’ redevelopment of Feltham town centre in west London for £67m.
Morley has bought the development on behalf of its life fund clients. The deal reflects a 6.5% equivalent yield.
The mixed-use project is already on site and comprises a total of 385,000 sq ft, including a new 80,000 sq ft Asda supermarket and a 50,000 sq ft Matalan, which will anchor the retail aspect of the development.
The scheme will also feature: a 115-bedroom Travelodge hotel; 800 residential apartments, which are being built by Barratts; an 18,000 sq ft library; a 20,000 sq ft medical centre; and 15,000 sq ft of offices.
The majority of the retail space is either let or occupied, with 50,000 sq ft remaining to be let.
A total of more than 1m sq ft of Feltham town centre is being developed by Thornfield.
Richard Jones, head of property life funds at Morley, said: “Feltham has been a location that has not been well served with commercial facilities for some time and we feel that this is putting a new heart into Feltham that will bring new life and vibrancy.
“It needed a degree of vision but rents have been rising and there is potential for very good rental growth over the next five to 10 years.”
Demolition at the site began in June last year and the scheme is expected to open by June 2006.
DTZ advised Morley Fund Management and will be retained as joint letting agent. Franc Warwick acted for Thornfield.
References: EGi News 24/02/05
