Financial services provider, APG, and real estate advisory firm, Delancey, have purchased the Elephant and Castle Shopping Centre in an £80 million joint venture deal.
The site, which is known as the South Village district, has been owned by Key Property Investments (KPI) for 11 years – a 50-50 venture between developer St Modwen and Salhia Real Estate Company. A St Modwen spokesperson said the figure offered reflects the potential of the site and will allow KPI to focus on other regeneration projects in London.
It forms part of the wider regeneration of Elephant and Castle and will include 600 residential units as well as 327,000sq ft of retail and office space.
Jamie Ritblat, CEO and founder of Delancey, said: “We are delighted to be continuing the delivery of a significant residential investment strategy in Elephant and Castle with such a high calibre partner as APG, particularly at a time when the affordability of housing in London is an increasing concern.”
Robert-Jan Foortse, head of European Property Investments at APG, said: "With Delancey we have found a joint venture partner with great experience and a proven track record. Together we share a vision of creating a scalable branded residential market."
The overall regeneration of Elephant and Castle is being led by international developer Lend Lease in partnership with Southwark Council.
Councillor Fiona Colley, Southwark cabinet member for regeneration, said: "I welcome Delancey and APG's purchase of the shopping centre and very much look forward to working with them on our plans to provide a destination town centre.
"We have already publicly expressed our requirement for full demolition in order for this to happen and spoken about our aspirations for better pedestrian access to the stations and new market square and park.
"The council already has a good relationship with Delancey as we have a joint-working arrangement for the Tribeca Square site in Elephant and Castle so I hope we can quickly start consultation on a project with so much potential for local residents, businesses and those coming to the area."
A new website for the local community, which explains the council's plans for the regeneration of Old Kent Road, has been launched