LaSalle Investment Management has acquired the Treaty Centre in Hounslow, west London, for £69.1m, reflecting a net initial yield of 6.4%.
The long-leasehold interest was acquired via a corporate acquisition from Angelo Gordon/Quidnet Capital for £57m, reflecting a net initial yield of 7.3%.
In a related transaction the freehold was also acquired from a private family for £12.1m, reflecting an initial yield of 3.25% and a marriage value payment.
The Treaty Centre is a fully enclosed shopping centre containing 51 shops, a library, theatre, department store and a 645-space multi-storey car park. It is arranged over three floors on a prominent seven-acre site fronting onto the high street.
Chris Fry, fund manager at LaSalle Investment Management, said: “The Treaty Centre is a good operational asset, let off rebased rents, in an area of greater London set to see considerable population growth.
“Our business plan is to achieve planning consent for residential development on part of the scheme to provide a significant return on investment.”
Tony Yiannakis, partner, Quidnet Capital, added: “Treaty Centre was Quidnet’s first acquisition and first joint venture with Angelo Gordon. We brought in a new mix of fashion retailers and created a food court.”
Jackson Criss, JLL and Trilogy Real Estate advised LaSalle; CBRE represented Angelo Gordon/Quidnet; and Allsop advised the freeholder.
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