Schroder UK Real Estate Fund (SREF) has today announced the off-market purchase of a portfolio of assets in Hammersmith from the Matterhorn Palos Partnership for £153 million.
The acquisition comprises the 340,000 sq ft Kings Mall Shopping Centre, the 1,000 space Kings Mall Car Park and the adjoining self-contained office building, One Lyric Square.
The recently refurbished Kings Mall is situated in the heart of Hammersmith, within close proximity of Hammersmith, Ravenscourt Park and Baron’s Court tube stations.
The shopping centre serves a large catchment area and is home to over 40 retail occupiers, including H&M, River Island, Sainsbury’s and Primark alongside a range of eateries and coffee shops.
One Lyric Square, which is directly above the centre, provides high quality, flexible office accommodation and is currently fully let.
With Disney, L’Oreal and Sony all based in the area – and Earl’s Court and Olympia located nearby – Hammersmith is now recognised as a popular and growing business hub, providing attractive opportunities to investors outside the core London markets.
Commenting on the acquisition, James Lass, Fund Manager at Schroder UK Real Estate Fund, said: “This is a clear demonstration of our strategy to capitalise on the strong growth we are witnessing throughout the London markets outside of the traditional ‘core’ with further strategic acquisitions where we see potential to add value through asset management.
“This asset fits that brief and enjoys strong connectivity with attractive amenity for occupiers. All the component parts of this deal include highly reversionary rents and provide us with significant opportunity for adding income and value.”
Schroder UK Real Estate Fund, previously known as Schroder UK Property Fund, is Schroders’ flagship real estate fund and is currently valued at £1.8 billion.
Micael Elliot and CBRE acted for SREF, while JLL and David Baroukh Associates acted on behalf of Matterhorn Palos Partnership.
