Developers of the former car factory site in Longbridge have today announced that the site’s shopping park has been sold to a global investment company.
Contracts have been exchanged between site developers St Modwen and Columbia Threadneedle Investments (on behalf of Zurich Assurance Limited).
The retail park – which includes a 150,000 sq ft Marks & Spencer, Smyths Toys, Boots, Poundland, Mountain Warehouse, Holland & Barrett, Carphone Warehouse and Specsavers and others – has been sold for £53.6 million.
The Longbridge shopping park is part of the £1bn Longbridge regeneration project. The scheme is now around 50% developed and St Modwen says it will now focus on bringing forward the development opportunities that remain on the 468-acre site.
In a separate transaction, St Modwen – whose head office remains in Longbridge – has exchanged contracts for the disposal of Wembley Central, a shopping centre and hotel complex in London.
St Modwen Chief Executive Mark Allan said that the sales were in line with the companies strategy to sell off up to £150 million of retails and smaller assets in 2018. He said that the capital released would be invested into the continuing development of the Longbridge site.
He said: “We plan to use the capital we release via these sales to bring forward future phases of Longbridge and accelerate the delivery of our 7.5 million sq ft near-term industrial/logistics development pipeline. We intend to retain the majority of the latter for the longer term, which with a yield on incremental capex of circa 9% will deliver a marked income pick-up relative to the average yield on these disposals.”
A planning application was submitted to Birmingham City Council for four large business units on the site of the former West Works last month. Comments on the proposal can be made until Thursday 10th May 2018. Read more