Hammerson furthers development in Croydon with acquisition

Real estate investment trust (REIT) Hammerson is acquiring Royal London's 25 per cent interest in the 155 year head-lease of the Whitgift Centre, Croydon.

The £65m purchase will offer "significant asset management and development potential" for the centre and will strengthen Hammerson's ownership interest in the area.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The company is planning to develop the Whitgift Quarter, which will incorporate the extended Centrale and a revitalised North End as well as the redeveloped Whitgift Centre site.

A public consultation programme on the Whitgift Quarter plans began last week and the latest version of the plans will be presented to Croydon Council's Strategic Planning Committee in October. Subject to planning consent, work will start on site in the first quarter of 2014 with completion expected in 2017.

David Atkins, Chief Executive of Hammerson, said: "We are absolutely committed to the delivery of our plans for Croydon, and we are confident that the development of the Whitgift Quarter will play a key role in the regeneration of the town. This transaction with Royal London is a key milestone in the development of our plans and our strategy to deliver a new retail core for Croydon. We are seeking to work collaboratively with all the owners and other stakeholders to bring forward this exciting scheme."

The share price fell 0.28% to 465.40p by 12:40.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.