LandSec confims purchase of O2 Centre

 

Land Securities has confirmed its off-market purchase of The O2 Centre, Finchley Road, NW3, for £125.9m and a 6% yield.

 

First revealed by Estates Gazette (News, 6 March 2010, p28), Land Securities has bought the scheme from the Matterhorn Palos Partnership, a jv between Matterhorn Capital and Sir Philip Green’s stepson Brett Palos.

 

The 10.5-acre site holds a 300,000 sq ft centre, anchored by a Sainsbury’s foodstore.

 

The scheme also includes a significant leisure component with an eight-screen Vue cinema, a 43,000 sq ft stand alone Homebase shop, with open A1 non-food planning consent at the far end of a 518-space car park.

 

Richard Akers, managing director retail portfolio for Land Securities said: “This is an excellent opportunity for Land Securities to expand its retail portfolio.

 

“We have been clear that we would look for assets which offered a strong catchment and the opportunity for us to apply our expertise to drive growth.

 

“London has proved a resilient retail market and the excellent location and opportunities offered by the centre, including its potential for immediate asset management activity and longer term development plans, make it an attractive significant opportunity for the group.”

 

Jones Lang LaSalle advised Land Securities; David Baroukh Associates advised the Matterhorn Palos Partnership.

 

annabel.dixon@estatesgazette.com