Wilkinson Williams

We were aware of Legal & General’s requirement for a foodstore investment and made an off market approach on their behalf for the freehold of the Blenheim Centre in Hounslow. The development was completed in 2006 and comprises some 128,000 sq ft of predominantly retail accommodation, with some ancillary leisure, healthcare and restaurant space. The centre is anchored by a 72,000 sq ft Asda foodstore with a 409 space basement car park. On the upper levels, there are some 484 apartments on a long lease.

The development lies adjoining the town centre and was proposed to be the first phase of a two stage development. The second phase was planned to be a shopping centre and leisure scheme linking into the high street. Legal & General will be, in time, looking to take this development forward in conjunction with Hounslow Council.

Legal & General purchased the property for £35.5 million from AREA. The price paid reflects a net initial yield of around 5.5%, rising to 6% next year on a fixed uplift in the Asda lease (to £16.70 per sq ft); with an anticipated further reversion following an open market rent review over the foodstore in 2016.