Land Securities has exchanged contracts for the sale of the Stratford shopping centre in East London to the Catalyst European Property Fund for £91.55m. The price represents a net initial yield to the purchaser of 7.25 per cent
Located on Broadway in Stratford town centre, opposite the new Olympic park, the 320,000-sq ft shopping centre is fully let to 60 retailers including Boots, Sainsbury’s and New Look. Due to its town centre location and direct connections with the bus and underground stations in Stratford, the centre attracts 21m visitors pa. The disposal also includes Morgan House, an adjoining 113,000-sq ft vacant office building and future development site, for £5m.
Gary Sherwin, head of retail investment for Land Securities, said: “We are pleased with the sale which has benefited from the limited amount of stock currently available in the investment market. The funds from the sale will be channelled into other activities including more immediate development opportunities.”
Peter Kasch of Catalyst Capital, manager of the Catalyst European Property Fund added: “The Stratford Centre fits within our fund requirements and is one of the best value retail investment opportunities we have seen this year. As well as a strong tenant line-up, the centre also has excellent development opportunities which will allow us to utilise our asset management and development expertise.”
Jones Land LaSalle acted for Land Securities and Lunson Mitchenall for the purchasers. Finance will be provided by pbb Deutsche Pfandbriefbank.
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