Aviva Investors, advised by MMX Retail, has acquired Hersham Green Shopping Centre in Surrey from Markland Properties for £15.40 million, reflecting a net initial yield of 5.35%.
The shopping centre extends to some 55,000 sq ft and sits on a significant 1.5 hectare site fronting on to Hersham Green. It is the main shopping destination in this affluent London suburb where Waitrose occupy 30,000 sq ft and over 70% of the income can also be attributed to them. Other tenants within the centre are mainly local operators including a chemist, optician, dry cleaner, luxury bathroom and kitchen furniture suppliers, as well as a Costa Coffee and Martin’s newsagents.
Nick Stewart, Partner at MMX Retail, explains: “Hersham Green Shopping Centre is a dominant convenience centre in an affluent London suburb that provides a one stop shop, mainly for the local population. Waitrose is the cornerstone of this investment and provides an opportunity for Aviva to capitalise on the significant footfall the supermarket generates from the affluent catchment population, to improve both the retail and leisure offer throughout the centre. ”
Anna Rule, Fund Manager at Aviva Investors, said: “The shopping centre is the main retail destination in the local area. Waitrose has over nine years remaining on their lease and we see this as a great investment opportunity. Waitrose will continue to provide strong rental income for us, but we want to invest in the centre and the area, by implementing a fully considered and deliverable asset management plan over the short to medium term.”
Coady Supple acted for Markland Properties.
