This article is from the Australian Property Journal archive
Lend Lease has furthered its relationship with United Kingdom property giant Minerva plc with the purchase of 50% interest in the Park Place retail development in Croydon, Greater London for £92.5 million ($A230 million).
The agreement is an acceleration of arrangements entered into in July 2005 under which Lend Lease would provide certain services and had an option to acquire an interest in the centre following completion.
As well as taking an equity position in the project, Lend Lease will provide development management and construction management services during development, and will provide asset and property management services to the centre on completion.
Park Place, which was granted detailed planning permission in May 2004, will be developed into a high quality 85,000 sqm shopping centre, including a department store, 14 major space users, and over 120 specialty shops.
Lend Lease’s UK chief executive Nigel Hugill said 20 years ago, Croydon was amongst the strongest ten retail locations in the UK.
“Although a lack of investment has brought about a fall in the UK hierarchy, there are now probably more unsatisfied requirements from major retailers for large modern space in Croydon than in any other location in the country.” he added.
“The investment in Park Place is consistent with our strategy of growing our pipeline of retail opportunities in the UK. This is a high quality, scale opportunity that is a great fit for our integrated property skill-set,” Lend Lease’s chief executive of retail and communities Ross Taylor said.
“Croydon has a very attractive retail catchment that is currently leaking spend to other centres. We have a fantastic opportunity to reposition the retail offering in Croydon town centre to capture that spend.” he added.
Minerva’s chief executive Salmaan Hasan said Park Place is a fantastic retail development opportunity and Lend Lease’s acquisition of a 50% stake is further proof of this.
“This agreement aligns our interests as we work towards the development and completion of the Park Place scheme, which will not only play a major part in the regeneration of Croydon but will transform it into a leading retail destination within the UK,” Hasan said.
The transaction is conditional on site consolidation and securing a department store anchor for the proposed development.
Construction is expected to start in early 2008, with completion forecast in 2011.
By Adam Parsons
