Delancey has completed the sale of its 50% stake in Southside Shopping Centre in Wandworth to Invesco for £150m and reflecting a c.4.5% yield, as tipped in November by CoStar News.
The stake in the 630,000 sq ft mall was held by DV4, clients of Delancey, through The Metro Shopping Fund, the company’s joint venture with Land Securities.
Separately Land Securities has sold its half stake in ShopStop, a stretch of shops and restaurants in Clapham Junction, to DV4. The two transactions mean Delancey and Land Securities have now exited The Metro Shopping Fund, with all third party debt repaid.
Southside is now held by a 50:50 joint venture between Land Securities and Invesco, with Land Securities taking over the asset management of the shopping centre.
Meanwhile Delancey has taken full asset management responsibility for ShopStop, a 70,000 sq ft mixed-use scheme comprising a range of shops, cafes and bars at the entrance to Clapham Junction station.
Knight Frank acted for Invesco and Lunson Mitchenall advised Delancey.
The sales will come as a welcome boost for the retail property investment market, and in particular the shopping centre market, which has been bereft of any major transactions since the start of the year.
Ailish Christian-West, Head of Shopping Centres at Land Securities, said: “The sale of Shopstop follows a strong period of growth. We are delighted to be taking on asset management responsibilities at Southside and welcome Invesco as our new partner.”
Tim Haden-Scott, Investment Director at Delancey, on behalf of investment fund DV4, said: “We are delighted to announce the sale of DV4’s 50 per cent stake in Southside Shopping Centre and acquisition of the remaining 50 per cent of ShopStop, Clapham Junction from Land Securities. Forming the retail offer at Clapham Junction railway station, one of Europe's busiest stations and located in an affluent area of London, ShopStop offers a significant future redevelopment opportunity for DV4.”
Southside was acquired by Delancey and Land Securities in August 2005 for around £188m and represented the first acquisition by Metro Shopping Fund since it was created in June 2004.
It undergone significant capital investment since purchase, which has seen the external appearance of the shopping centre on Garrett Lane transformed by redevelopment, providing modern retail and restaurant units with the latest addition of an 82,000 sq ft department store let to Debenhams and 8 further new retail units. Other tenants include Waitrose, Office, Gap, Topshop, Next, H&M and Primark.
Andy Rofe, managing director – Invesco Real Estate said: "IRE is delighted to be partnering with a market leader such as Land Securities, which has a strong track record of shopping centre management and ownership. Southside is a super prime asset in a gateway city and we are excited to add this asset to our core portfolio and work with Land Securities to enhance the asset and ultimately deliver investment performance for our clients.”