British Land has put a high street parade in Putney, SW15, with permission for a 97-flat development, up for sale priced at £15m.
Knight Frank has been appointed to market the island site at a price that reflects a 4.29% yield.
The freehold site of four shops at 56-70 Putney High Street is let to TK Maxx, Halfords, Barclays and Superdrug. It has permission for 38,584 sq ft of new retail and leisure in addition to the seven storeys of flats.
The retail units generate £722,920 in rent pa and offer four upper levels that contain a children’s play centre, a health club, a gym and two flats.
The average residential rental sales value in Putney is around £1,000 per sq ft. Of the 97 planned flats, 14 would be affordable.
Any developer would have to agree a lease surrender with tenants Barclays and TK Maxx, whose leases expire in 2071 and 2023 respectively.
British Land bought the parade as part of a £183.8m portfolio purchase from Dutch company Wereldhave in 2013.
Plans for the residential development were initially rejected by Wandsworth Council, which cited concerns over height, design and existing high pollution levels as reasons for refusal.
However, in October last year former mayor of London Boris Johnson overruled the decision, stating that the development had a “significant impact on the implementation of the London Plan”, a “significant effect on more than one borough”, and that there were “sound planning reasons for the mayor to intervene”.
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