British commercial investment entity Matterhorn Palos Partnership, a joint venture between Matterhorn Capital and Brett Palos Investments, has sold, in an off market transaction, the prominent Kings Mall shopping centre in Hammersmith, West London.
Schroders UK Real Estate fund paid £153 million, and as part of the sale Schroders has also acquired One Lyric Square, an 88,000 sq ft fully-leased office building adjoining Kings Mall, and a 1,000 space car park to the rear of Kings Mall.
First opened in 1980, Kings Mall (pictured) in the centre of Hammersmith provides 340,000 sq ft of prime retail space, with more than 40 outlets and eateries including major national brands.
Simon Conway, Chief Operating Officer at Matterhorn Capital, said: “This deal represents the culmination of the hard work undertaken to regenerate the Kings Mall Shopping Centre and revitalise Hammersmith High Street.
“Since the partnership took ownership, alongside the joint-venture development with Berkeley Group plc to build 420 new homes on the site, we have improved the interior and exteriors of the building and signed new leases with well-known high street retailers in the centre.
“This, in turn, has attracted a number of other big retailers to King Street and improved the commercial viability of the area.”
Hammersmith is one of the largest regional centres in West London, enjoying access to the Piccadilly, District, Circle and Hammersmith & City lines from Hammersmith underground station.
The centre is in the midst of a £150 million regeneration project. The new retail hub at Lyric Square, new offices and commercial space on Hammersmith Grove, and the refurbishment of Kings Mall have revitalised the area, with the Grade II listed Town Hall also set for a makeover.
The Kings Mall sale represents a continuation of successful investment deals for Matterhorn Palos Partnership, with the firm acquiring the O2 Centre in Hampstead, London NW3, in 2011 from X Leisure. The O2 Centre is a prominent retail and leisure centre, providing an array of high-end retail stores, restaurants, bars, cafes and cinema complex.
In 2014, Matterhorn Palos Partnership sold three Spire Healthcare Hospitals for £110 million to the largest U.S. healthcare Real Estate Trust. Spire Healthcare is a publicly quoted healthcare specialist with a number of clinics and hospitals across the U.K.