Lunson Mitchenall completes on landmark London deal

April 24, 2017

The investment team has represented DV4, an investment fund advised by Delancey, on the sale of its 50% stake in Southside Shopping Centre, Wandsworth, to Invesco Real Estate for £150 million reflecting a 4.45% initial yield. In addition, DV4 has purchased Land Securities’ 50% stake in ShopStop, Clapham Junction .

The deal is the biggest shopping transaction to have occurred in 2017 and one of the most significant since the Brexit announcement. Following completion of the deal, Land Securities and Delancey will exit The Metro Shopping Fund, the JV partnership which previously owned both Southside and ShopStop. Invesco Real Estate, the global real estate investment manager, will replace DV4 in its 50/50 partnership with Land Securities as joint owners of Southside Shopping Centre. DV4 will take sole ownership of ShopStop, with Delancey as development manager.

Southside Shopping Centre is a dominant retail destination in South West London and comprises 630,000 sq ft of prime retail and leisure space in the heart of Wandsworth. The sale follows a successful seven-year repositioning project which, led by Delancey, Land Securities, the London team at Lunson Mitchenall and supported by the lease advisory team, has seen it transformed from a discount shopping centre to a leading retail and leisure destination.

The opening of Debenhams in late 2015, as part of the new Garratt Lane extension, cemented the centre as a leading presence in South West London and has resulted in subsequent deals including securing Decathlon its first in-town store in the UK, Byron and Pret A Manger. The centre is now 97% let and enjoys and annual footfall of 10 million.

 

Speaking about the sale, John Griffin, Head of Investment said: “This is a strong result for our long standing clients at Delancey. Southside represented a rare opportunity to acquire one of London’s most dominant shopping centres with a diversified tenant mix in a growing and improving catchment. We received high levels of interest in the asset with a number of competitive bids are pleased to have sold to a reliable buyer in Invesco. Despite current levels of apprehension in the market at the moment, this is a vote of confidence for the UK retail investment sector.”

Peter Courtney, Head of London, who has advised on the leasing aspect of the centre said: “Over the last seven years we have worked closely with Delancey to reposition Southside and diversify its tenant mix. The centre now forms the centrepiece of Wandsworth, a London borough which is enjoying unprecedented levels of regeneration. The completion of the Garratt Lane extension in particular has opened doors to a new calibre of retail and leisure brands which complement Southside’s aspirational catchment.”

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This is a strong result for our long standing clients at Delancey. Southside represented a rare opportunity to acquire one of London’s most dominant shopping centres with a diversified tenant mix in a growing and improving catchment. We received high levels of interest in the asset with a number of competitive bids are pleased to have sold to a reliable buyer in Invesco. Despite current levels of apprehension in the market at the moment, this is a vote of confidence for the UK retail investment sector
John Griffin - Head of Investment

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