Crown Estate agrees £177 million retail park sales

We have agreed to sell two retail parks for a combined price of £177 million.


20 January 2016

Bath Road Shopping Park, Slough
  • Bath Road Shopping Park in Slough is being sold to Royal London Asset Management for £93.65 million
  • Morfa Shopping Park in Swansea is being sold to Ashby Capital for £83.5 million. Ashby Capital has appointed Quadrant Estates as asset manager for Morfa Shopping Park.

Hannah Milne, Head of Portfolio said: “Both schemes have been strong investments, helping us to build critical mass in the sector and providing strong returns for the portfolio. As we continue to focus on larger, more dominant schemes, now is the right time to sell and take advantage of strong capital markets, following successful delivery of our asset management strategies for these parks.”

As we continue to focus on larger, more dominant schemes, now is the right time to sell and take advantage of strong capital markets, following successful delivery of our asset management strategies for these parks.”

Hannah Milne, Head of Portfolio

Peter Ferrari, Chief Executive of Ashby Capital said: “Our focus is on identifying, acquiring and adding value to office, retail and residential properties in prime locations. As Swansea’s premier shopping park and the dominant retail centre in the South West of the country, Morfa Shopping Park is an excellent addition to our portfolio and we are very pleased to have worked with The Crown Estate to conclude this purchase in a very short timescale. This acquisition offers stable core income at an attractive yield with the prospect for further growth through asset management, and we look forward to working with the expert team at Quadrant to realise its potential.” 

Christopher Daniel, Founding Partner at Quadrant Estates, said: “We look forward to working with Ashby Capital to maximise the value of this well-located and popular retail park.” 

Michael Lawrence, Fund Manager at Royal London Asset Management, said: “The acquisition of the Bath Road Shopping Park is a great addition to our property portfolio. The park offers latent asset management potential and given the strong south east location, rental growth prospects are favourable.” 

The Crown Estate cannot borrow so we fund investment in our four core sectors (dominant regional retail and leisure, London’s West End, offshore wind and strategic land) through joint ventures and sales of assets which are not considered core to the business.

Our shopping park portfolio is currently valued at £1.5 billion and includes schemes in places like Leicester, Newcastle and Aintree. We also own interests in three shopping centres, Exeter’s Princesshay, Oxford’s Westgate Centre, and Worcester’s CrownGate.

Across our portfolio, we are focusing on delivering development and asset management activity at dominant schemes. The business is currently:

  • On site to extend Silverlink Shopping Park near Newcastle;
  • Awaiting a planning decision from Blaby District Council with regards to an extension to Fosse Park;
  • On site redeveloping the Westgate Centre in Oxford in partnership with Land Securities;
  • Awaiting a decision from Exeter City Council regarding a leisure extension to Exeter’s Princesshay.

Wilkinson William acted for The Crown Estate on the sale of Morfa Shopping Park with CWM acting for Ashby Capital. CWM acted for The Crown Estate on the sale of Bath Road Retail Park, with Wilkinson Williams acting for the purchaser, Royal London.