1-8 The Broadway is in the midst of a transformational re-development, which will convert the old Arcadia Shopping Centre – a tired, poorly configured, 27-unit enclosed centre – into three contemporary stores fronting The Broadway. Major high street retailers have signed up to take the entirety of the c. 100,000 sq ft being delivered: Morrisons will open London’s first completely new, high quality ‘Fresh Market’ store in 47,000 sq ft at ground level; TK Maxx will more than double its presence in the centre to 43,000 sq ft; and McDonalds will relocate from its current unit to take a prominent, 9,000 sq ft corner store facing both The Broadway and High Street. Work on the project will be completed in the autumn of this year.
The 1-8 Broadway project marks the first phase of a comprehensive reworking of the 2.8 acre Arcadia Portfolio site. Benson Elliot initially acquired the Portfolio in December 2012, buying in 12-14 The Broadway to add to the estate in March 2013. The company’s total current investment in Ealing town centre, including the June 2013 acquisition of Ealing Cross, a prime office property situated 600 metres further west on Uxbridge Road, amounts to c. £90 million.
Phil Irons of Benson Elliot, said:
“Following a comprehensive re-development and repositioning of the asset, we are pleased to have forward sold 1-8 The Broadway to Pramerica. The sale reflects not only the quality of the asset and renewed investor and retailer confidence in Ealing, but also the recognition that Crossrail’s imminent arrival will be a game-changer for Ealing.
“The disposal enables us to bring forward the second phase of the Arcadia Portfolio re-development; We’re looking forward to working hand-in-glove with Ealing Council on this next stage of the project, to design and deliver a scheme that will enhance further Ealing town centre.”
Christopher Santer, Director, Portfolio Management at Pramerica said:
“1-8 The Broadway is a very high quality, liquid, retail property with excellent income characteristics, let to strong tenants on long, inflation linked leases. It is well located in the exciting London sub-market of Ealing, adjacent to the London Underground station, where it is well positioned to benefit from the impact of the planned Crossrail connection and the expected improvements in the local area, which have the potential to generate capital value growth.
Pat Hayes from Ealing Council said:
“The sale of the remodelled Arcadia Centre is good news for the borough as it once again demonstrates that Ealing is a place where major blue chip international investors want to be and that Ealing town centre is a strong commercial prospect.
“It also gives Benson Elliot additional resources to tackle the more challenging second phase of the scheme, and we look forward to working with them on this project, Arcadia having gone so well.”
Design work on the rest of the portfolio has now started, with Benson Elliot starting consultation with local communities in early 2014. The plans, to be designed by Allies and Morrison, are expected to include a core of residential development surrounded by new retail space and quality public realm. The arrival of the £18 billion Crossrail project from 2018 will further improve the area’s accessibility, reducing commuting times to central London by up to 50% and enhancing Ealing’s popularity as a place to live, work and socialise.
Strutt & Parker and GCW advised Benson Elliot on the sale and Lunson Mitchenall acted for Pramerica.
Pramerica Real Estate Investors is a leader in the global real estate investment management business, offering a broad range of investment vehicles that invest in private and public market opportunities in the United States, Europe, the Middle East, Asia, Australia and Latin America. Headquartered in Madison, N.J., the company also has offices in Atlanta, Chicago, Miami, New York, San Francisco, Frankfurt, Lisbon, London, Luxembourg, Munich, Paris, Abu Dhabi, Mexico City, Sao Paulo, Beijing, Hong Kong, Seoul, Singapore, Sydney and Tokyo. In addition, the company has representatives in Milan. Pramerica Real Estate Investors had gross assets under management of USD $51 billion ($38.7 billion net), as of June 30, 2013. For more information, visit http://www.pramericarei.com.
Pramerica Financial is a trade name used by Prudential Financial, Inc., a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. PFI (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2013, has operations in the United States, Asia, Europe, and Latin America. PFI’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., the company’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/ . PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.
About the three tenants for 1-8 The Broadway
Morrisons is a new retailer to 1-8 The Broadway and will occupy a 47,000 gross sq ft ‘Fresh Format’ store. The Fresh Format store is a new ‘best in class’ format, which will deliver a wide range of fresh produce at great Morrisons value.
TK Maxx already trades on the upper level of the Arcadia Shopping Centre and will expand across the rest of the floor, doubling in size to 43,000 gross sq ft. The store will gain a new Broadway entrance including escalators and lifts. It will continue trading throughout the building works and will also re-open its Spring Bridge Road entrance.
McDonalds will move across from its current store to take The Broadway corner unit, formerly occupied by HMV. The new store will be 9,000 gross sq ft. It will also continue trading throughout the building works.
About the Arcadia Portfolio
The properties were assembled between 2006 and 2008 by Glenkerrin, an Irish developer. They planned to develop a c.1,000,000 sq ft mixed retail and residential scheme; while the Glenkerrin proposals for regeneration gained the backing of LB Ealing, at a subsequent Public Inquiry the proposed scale and height were considered not to be in keeping with the adjoining Conservation Areas. In 2011, Glenkerrin was declared insolvent, resulting in all company assets being transferred to the National Asset Management Agency (“NAMA”).
On 29 October 2012, Benson Elliot exchanged contracts with Malcolm Shierson and Martin Ellis of Grant Thornton acting as Joint Administrator of Glenkerrin (UK) Limited and Joint LPA receiver over the assets of The Broadway Partnership for the acquisition of the Arcadia Portfolio, the major part of a 2.8-acre island-block in Ealing town centre, West London. Benson Elliot completed the deal on 7 December 2012.
In March 2013 Benson Elliot acquired 12-14 The Broadway from Legal & General and has now let the store to fast-expanding boutique coffee shop Harris + Hoole.
In June 2013 Benson Elliot received a resolution to grant consent from LB Ealing for the internal and external changes to the Arcadia Shopping Centre.