Housebuilder snaps up part of Kew Retail Park in £41m deal

Part of Kew Retail Park has been sold to a builder in a £41 million deal it has emerged, in a move likely to signal new homes will be coming.

FTSE 250 firm UK Commercial Property Reit, which invests in offices and warehouses and has been reducing its exposure to some retail real estate in recent years, said the deal is with a ‘UK leading housebuilder’.

It did not say the name of the purchaser, but property news website React News reported that Berkeley Group is the buyer. Berkeley has been contacted for comment.

Of the complete 10 acre park, the firm owned 4.7 acres comprising some 61,765 square feet of space across five properties which are fully let on short leases to a range of tenants including Boots, Sports Direct, Gap, Next and TK Maxx.

Will Fulton at Aberdeen Standard Investments,  which manages and advises UK Commercial Property Reit, said:  “The transaction permits us to take advantage of strong demand for residential development opportunities and generates further capital for us to invest into income accretive properties.”

The company will receive a consideration of £41 million for the asset, marginally below the December 2020 book value.