Development Securities today announces that it has sold the majority of its Market Place property, a mixed-use development in Romford, for £12.3 million (approx. €15.6 million) to Henderson Global Investors at a 6.96% yield.
Market Place was acquired together with an adjacent office building, Tollgate House, in July 2013 for £8.3 million (€10.5 million) from administrators acting on behalf of Lloyds Banking Group. The development comprises two phases: the first phase includes 44,300 ft² (4.087 m²) of retail space let to national retailers including Aldi, Boots and Iceland as well as 69 sold off residential apartments.
The second phase comprises 35,200 ft² (3.251 m²) of retail space and 22 residential apartments. Development Securities has completed the required construction and refurbishment works to both phases, fully let the retail space and marketed the apartments for private sale 20 of the 22 apartments, which are not included in the sale to Henderson, have exchanged or completed and the remainder are under offer.
Tollgate House, which will not be retained long-term, is a prominent building in Romford town center which has been refurbished since acquisition.
Matthew Weiner, Executive Director, Development Securities said: “Since acquiring Market Place, we have significantly increased the value of this asset through development and refurbishment works. The development benefits from a town centre location within easy reach of Romford station which will be linked to Crossrail in 2018. The sale of Market Place to Henderson will allow us to recycle equity into further development and investment opportunities where we can add value through a process of regeneration.”
Source: Development Securities