Browne Jacobson has acted for Croydon Council in its £53m acquisition of the Colonnades Retail and Leisure Park on Purley Way, Croydon.
The deal will see the local authority acquire the site’s existing nine units whose current occupiers include Nuffield Health, McDonald’s, Costa, Premier Inn and Wickes, amongst others. A further three units will be constructed and these will transfer to the Council by May 2019.
The Browne Jacobson team was led by Birmingham based real estate partner Brian Hession, supported by Andrew Noble (tax) and William Barrington (construction).
It is anticipated the purchase will provide the Council with an annual income of around £1.4m, net of interest and other costs.
Councillor Simon Hall, cabinet member for finance and resources, said:
“We’re investing in our borough, for our borough. This is a solid investment on a well-performing asset, enabling us to bring in additional income to fund core services.
“As government grant funding for local authorities remains uncertain, we’re doing what we can to ensure we can provide services our residents expect and deserve.”
Brian Hession, property partner at Browne Jacobson, added:
“We are seeing a significant rise in investments being made by local authorities such as Croydon in the commercial property market.
“This is an important investment by the Council to support the long term delivery of key services in the borough and we are delighted to have advised them on this matter.”
