The property was purchased for Invesco’s pan-European core strategy. The company enters the partnership with Land Securities, after buying Delancey’s share in the shopping centre.
Invesco has been working to increase its allocation in shopping centres and this asset is forecast to provide a solid net operating income, according to Rob Johnson, senior director of transactions at Invesco.
At the same time, Land Securities has sold its 50-percent stake in StopShop, a 70,000-square foot mixed-use scheme at the entrance to Clapham Junction station. Delancey has taken asset management responsibility for StopShop.
The sales mean Land Securities and Delancey have now exited The Metro Shopping Fund and all third-party debt has been repaid.
The management of Southside Shopping Centre has been handed to Land Securities.
Andy Rofe, managing director at Invesco, said: “Invesco is delighted to be partnering with a market leader such as Land Securities, which has a strong track record of shopping centre management and ownership.”
He added: “Southside is a super prime asset in a gateway city and we are excited to add this asset to our core portfolio and work with Land Securities to enhance the asset and ultimately deliver investment performance for our clients.”
Tim Haden-Scott, investment director at Delancey, said: “Since establishing the Metro Shopping Fund 13 years ago, we have enjoyed a successful longstanding partnership with Land Securities, which has been responsible for significant developments at the Southside Shopping Centre scheme.”
He added: “Southside has proven to be an excellent asset, however now our business plan has come to an end with the completion of the Garratt Lane development, we will refocus activity to assume full asset management responsibility for ShopStop, Clapham Junction an asset which was also formerly held within the Metro portfolio.”
Invesco was advised by Knight Frank, while Lunson Mitchenall advised Delancey.