The Pan-European property investment manager Meyer Bergman has paid £300m for the Vinopolis site in London. It intends to build almost 200,000 sq ft of high-end stores on the plot next to the capital’s Borough Market.
Meyer Bergman European Retail Partners II (MBERP II) has joined forces with niche central London developer Sherwood Street to acquire the leasehold of the two-acre site beneath the Victorian railway arches. In separate deals the partnership has also bought Thames House, a mixed use building adjacent to the Vinopolis Centre, and several neighbouring plots all of which will be rolled into the new retail development.
Vinopolis — a popular wine tasting and events venue —confirmed earlier this month that it is to close its doors at the end of the year.
A planning application will be lodged with Southwark Council, which has actively supported the scheme, within weeks. The partners have also been working on initial proposals for the redevelopment in collaboration with the freehold owner of the site, Network Rail.
“We have, and will, continue to work closely with all parties and stakeholders to draw up a scheme that is entirely in keeping with the cobbled streets and artisan feel of the area, which we anticipate will be hugely appealing to new brands, designers, restaurant or bar concepts and fashion retailers,” commented Sherwood Street founder, Tom Sherwood.
The proposed 193,750 sq ft boutique store development is adjacent to Borough Market, one of the capital’s premier attractions for gourmet food lovers. It is on the south bank of the Thames, a short walk from The Shard and facing the City of London financial district. “You aren’t going to get a better location in central London that is lacking a quality retail offering for shoppers than this,” Sherwood added.
The Meyer Bergman fund specialises in retail investments in the centre of major European cities including the Champs-Elysees in Paris and two Karstadt department stores in Berlin. Its other London holdings include retail buildings on Bond Street, Piccadilly and Queensway.
MBERP II was raised last September from institutional investors and, prior to the Vinopolis deal, held a war chest of £551m. Meyer Bergman said the fund attracted 15 pension funds, endowments, and asset managers from Asia, Europe, the Middle East and North America.
Markus Meijer, chief executive of Meyer Bergman, claimed unfilled demand from global investors reflected the attraction of properties in Europe’s major shopping destinations. “Europe’s real estate markets present attractive opportunities, particularly for our value-add focus on retail properties,” he said.
“Banks are getting to grips with their lending portfolios, bringing more assets onto the market that need fixing or repositioning.”
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