Joint venture acquires Notting Hill office and retail block

Development Securities and Brockton Capital purchase Kensington Church Street asset

Article posted: 16 Jun 2011

Development Securities, in partnership with UK real estate fund Brockton Capital Fund II LP, has today announced that it has agreed to purchase retail and office space in Notting Hill, in a block on Kensington Church Street, for the sum of £47.5m. Under the terms of the partnership, Brockton will have a 75% ownership with Development Securities retaining a 25% stake. Completion is due to take place next week.

The block, which totals approximately 1 acre, comprises Newcombe House, a 14-storey office building that includes surface parking for 55 cars, as well as 13 retail units. The partners are in the early stages of evaluating a strategy for the asset with options ranging from a refurbishment of the existing office tower and asset management of the retail accommodation to a comprehensive mixed use development.

Matthew Weiner, Executive Director, Development Securities, commented: “This acquisition is part of our continued strategy to use our asset management expertise and equity to seek out high quality assets that offer maximum optionality going forward. The Kensington Church Street block is in an absolutely prime location and provides an extremely flexible built form, with a number of strategies for repositioning and adding value.

“Having already let a vacant floor within the office tower, we think there is potential for further office lettings as part of an on-going asset management strategy. In addition the asset’s retail offer is mixed having been held back by possible redevelopment schemes. We will consider how best to capitalise on the retail renaissance that has taken place in the surrounding area.”

Brockton Capital recently invested in retail and office space in Birmingham, in the West Midlands with its purchase of the 750,000 sq ft Mailbox.

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Posted by Jo