One of the UK’s largest housing associations has bought a shopping centre in Bristol in a £27.2m deal.
Sovereign Housing Association, which is a provider of affordable housing across the south of England, has acquired Clifton Down Shopping Centre from BlackRock UK Property Fund.
The centre, which also includes a 350-vehicle car park, is now the biggest commercial property in Sovereign’s portfolio.
A local residential property and smaller surface car park has also been bought as part of the investment.
Clifton Down was built in the early 1980s and the shopping centre and car park cover more than three acres of land.
According to Sovereign, the income generated from ownership of the centre and the adjacent land means it will be able to deliver additional affordable housing across the south of England, improve the quality of existing homes and increase charitable purposes.
Tom Titherington, executive director of development and commercial for Sovereign, hailed the deal as a “step change” in the association's development ambitions.
He said: “We have ambitions around taking more of a land-led approach, and the control that gives us, in our development plans and so we are delighted to have secured the Clifton Down shopping centre and the adjacent land.
“This is a retail led, mixed use investment and is a really exciting opportunity for us as a business.
"The income will allow us to increase our development programme, and in the medium to long term there is the potential to redevelop the site to create a sustainable major mixed use development to include affordable and market housing.”
James Gibson, development director, added: “It is fantastic for us and the area. It is the largest commercial investment owned by Sovereign and it is really good news for the business, especially in the current climate.”
According to Sovereign, the transaction is in line with BlackRock UK Property Fund’s strategy to reduce its retail exposure.
Sovereign was represented in the transaction by Savills and BlackRock by Knight Frank.
