St Modwen JV sells London shopping centre for £80m
AN INVESTMENT joint venture involving Birmingham developer St Modwen has sold the Elephant & Castle Shopping Centre for £80m.
Key Property Investments, a 50/50 joint venture between St Modwen and Salhia Real Estate Company has sold the South London mixed use scheme to Delancey and APG.
The sale price reflects a yield of 4.25% and is significantly above the asset’s current book value.
KPI acquired the Elephant & Castle Shopping Centre, a retail, leisure and office complex of 327,000 sq ft, in May 2002 for £29.25m.
St Modwen said the acquisition was in line with its strategy to own income-producing assets which offer the potential to grow value through active asset management initiatives and, ultimately, redevelopment.
Bill Oliver, chief executive of St Modwen, said: “For the last 11 years, we have significantly increased the value and potential of the Elephant & Castle Shopping Centre through strong asset management initiatives and we had also looked forward to redeveloping the centre to drive a wider scale regeneration of the area.
“However, both St Modwen and Salhia believe that the price offered fully reflects the potential of the scheme and provides certainty of exit, while crystallising a significant profit for our shareholders.
“We believe this is a very positive outcome which also leaves us well placed in terms of capital and human resources to focus on our other significant regeneration projects in London and the regions.”
