British Land purchases 50% holding in Surrey Quays
British Land has purchased its joint venture partner Tescos 50% holding in the 300,000 sq ft Surrey Quays Shopping Centre for £48 million.
As a result of the purchase, British Land now owns 100% of the south east London centre and is planning a £38 million upgrade. This will include a 100,000 sq ft extension, the refurbishment of the existing centre along with improvements to public spaces and connections to Surrey Quays and Canada Water tube and bus stations.
Surrey Quays is anchored by a 115,000 sq ft Tesco Extra with key retailers including Bhs, River Island, New Look, JD, Boots, Burton and Dorothy Perkins. As part of the deal, Tesco has committed to a new long-term lease on its store and the petrol filling station, which accounts for a significant part of the centre’s income.
Charles Maudsley, head of retail at British Land said: "We intend to create a modern retail environment to attract the growing, affluent local catchment. We are aiming to take the scheme beyond its current functional shop by broadening the tenant mix and introducing larger retail units alongside a more attractive food offer. All this should increase overall spend."
The acquisition follows British Land's recent acquisition of the Ealing Broadway shopping centre for £180 million as it looks to take advantage of an increased flow of investment opportunities particularly in London and the South East.
Chris Grigg, chief executive of British Land, said: "British Land’s scale, access to finance, extensive relationships and expertise in planning, asset management and deal execution put us in a strong position to continue to source attractive acquisitions and to deliver superior total returns for our shareholders."
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