Unibail-Rodamco-Westfield has taken control of the redevelopment of the centre of Croydon in south London after buying out long-term 50:50 joint venture partner Hammerson in a major real estate transaction exclusively revealed by CoStar News.
In a statement the French real estate giant said it has completed the acquisition of Hammerson’s 50% stake in the Croydon Partnership, a 10-hectare parcel which includes the Whitgift and Centrale shopping centres as well as high street retail frontage, office blocks and multi-storey car parks in the heart of the designated GLA Opportunity Area in South London.
The price paid has not been disclosed.
The sale terminates decade-long plans for the partners to combine their separate interests in Croydon's two main shopping centres – Centrale in Hammerson's case and the Whitgift Centre, where URW is development partner for the Whitgift Foundation – to build out what would be London's last major retail destination. The Whitgift Foundation is a charity that dates back 426 years to the Hospital of the Holy Trinity and uses its land and assets to help people in Croydon.
The plans have been through several iterations as the partners reacted to worsening sentiment around physical retail as well as the pandemic over the past 10 years.
The partnership was formed after a long-running battle for control of the site in 2013 with plans drawn up for a multi-pound-development that first gained outline consent in 2014.
In October of last year news emerged that the mall would also include a hotel and offices, with Jean-Marie Tritant, the CEO of Unibail-Rodamco-Westfield, telling the Sunday Times he was still committed to redeveloping the Whitgift Centre.
Tritant said in a statement: “Urban regeneration projects are at the heart of URW’s purpose to create sustainable places that reinvent being together, and we are very excited about what can be achieved in Croydon. With our full ownership of the property, it allows URW to work in partnership with the Mayor of Croydon, the Greater London Authority and other vital local stakeholders on a vision and options that support the wider transformation of the area.”
Jason Perry, Mayor of Croydon said: “The regeneration of Croydon town centre remains a top priority and I have been working closely with businesses and partners to bring forward the redevelopment of the Whitgift Centre and wider regeneration of the town centre. We welcome the agreement that has been reached by URW as an important step in progressing this. We look forward to working with them as they develop a new masterplan in 2023, which will inform a new, revised application for the town centre that will meet the future needs of our community.
"I have reconvened the Mayor’s Town Centre Advisory Board, which is working with key partners to drive forward the regeneration, and we look forward to seeing plans progress.”
URW said the Croydon project is fully aligned with its strategy of unlocking mixed-use development opportunities embedded in its portfolio. It also builds on the "success of its transformational UK regeneration projects in both White City and Stratford".
Rita-Rose Gagné, CEO, Hammerson, said: “The transaction reinforces the group’s disciplined approach to capital allocation to deliver a sustainable, best in class platform that unlocks value for all stakeholders.”
Retail real estate investment trust Hammerson said it was optimistic of reaching its £500 million asset disposal target in its most recent full-year results.
Part of its 2021 strategy to turn around the business includes a disciplined disposals plan that would focus the group on a core portfolio of urban estates, reducing indebtedness and generating capital for redeployment into core assets.
Hammerson completed £195 million of disposals in 2022, including the sale of its Leeds Victoria Gate and Victoria Quarter shopping centres in Leeds for £120 million and its 50% share of Silverburn in Glasgow for £70 million.