TR Property Investment Trust has sold the Colonnades in Bayswater, W2, for £33.5m after holding it for more than two decades.
The listed investor, which can hold 15% of its assets in physical real estate, sold the mixed-use property to an unnamed private family office.
The sale is part of TR Property’s strategy to recycle capital out of mature assets. It purchased the freehold of the site for £4.2m from Westminster City Council in 2001.
Spanning 64,000 sq ft, the two-acre site comprises residential and commercial space let to occupiers including Graham & Green, 1Rebel and Specsavers.
The commercial element underwent a refurbishment and extension in 2015 which added 16,000 sq ft to the property and doubled the size of the supermarket to 44,000 sq ft. This was let to Waitrose on a new 20-year lease.
Flats on the upper levels were sold in 2022 on a 999-year lease for £5m.
As recently as the fund’s 2023 annual report, it said: “Ultimately, the residential element of the Colonnades was sold, and a decision was made to retain the commercial element for the foreseeable future.” This came after the site went under offer in March 2022 “with a sale expected to complete by the end of June 2022”.
George Gay, direct property fund manager at TR Property, said: “Through this sale we have been able to unlock in excess of £30m to invest into higher-yielding assets such as multi-let light industrial. Having transformed the Colonnades, this is the right time to exit and turn towards future opportunities and growth.”
Image from TR Property
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