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.
Hammerson already owns the adjacent Centrale centre and earlier this year revealed plans for the Whitgift Quarter, a 150,000m development which it believes will "restore the town to its rightful place as one of the UK's leading shopping destinations".
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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.
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