Benson Elliot has agreed the forward sale of 1-8 The Broadway, part of its Ealing (London) town centre portfolio, to Pramerica Real Estate Investors for GBP37.4m.
1-8 The Broadway is in the midst of a transformational re-development, which will convert the old Arcadia Shopping Centre – a tired, poorly configured, 27-unit enclosed centre – into three contemporary stores fronting The Broadway.
Major high street retailers have signed up to take the entirety of the c. 100,000 sq ft being delivered: Morrisons will open London’s first completely new, high quality ‘Fresh Market’ store in 47,000 sq ft at ground level; TK Maxx will more than double its presence in the centre to 43,000 sq ft; and McDonalds will relocate from its current unit to take a prominent, 9,000 sq ft corner store facing both The Broadway and High Street.
Work on the project will be completed in the autumn of this year.
The 1-8 Broadway project marks the first phase of a comprehensive reworking of the 2.8 acre Arcadia Portfolio site. Benson Elliot initially acquired the portfolio in December 2012, buying in 12-14 The Broadway to add to the estate in March 2013. The company’s total current investment in Ealing town centre, including the June 2013 acquisition of Ealing Cross, a prime office property situated 600 metres further west on Uxbridge Road, amounts to c. GBP90m.
Phil Irons of Benson Elliot says: “Following a comprehensive re-development and repositioning of the asset, we are pleased to have forward sold 1-8 The Broadway to Pramerica. The sale reflects not only the quality of the asset and renewed investor and retailer confidence in Ealing, but also the recognition that Crossrail’s imminent arrival will be a game-changer for Ealing.
“The disposal enables us to bring forward the second phase of the Arcadia Portfolio re-development; We’re looking forward to working hand-in-glove with Ealing Council on this next stage of the project, to design and deliver a scheme that will enhance further Ealing town centre.”
Christopher Santer, director, portfolio management at Pramerica, says: “1-8 The Broadway is a very high quality, liquid, retail property with excellent income characteristics, let to strong tenants on long, inflation linked leases. It is well located in the exciting London sub-market of Ealing, adjacent to the London Underground station, where it is well positioned to benefit from the impact of the planned Crossrail connection and the expected improvements in the local area, which have the potential to generate capital value growth.