Opinions.

CBRE Global Investors turns to shopping centres

January 2015

It acquired Hammersmith Broadway and Fulham Broadway centres in West London for £270.5 million on behalf of CBRE GI’s Malaysian pension fund client the Employees Provident Fund. The centres were purchased from the William Ewart Group in a deal reflecting a net initial yield of 5%. They are both flagship assets, located in affluent London areas above key transport hubs and with very strong footfalls.

The 67,846 sq ft Hammersmith Broadway is fully let with over 70 tenants including Tesco, Boots and McDonald’s and generates an annual rental income of £5.4 million. The 195,703 sq ft, Fulham Broadway has 43 tenants who are predominately national multiple retailers and food operators including Sainsbury’s, Wilkinson, Boots and Starbucks. It boasts a multi-screen Vue cinema and a David Lloyd leisure centre. 

Both centres have a strong food offer but serve slightly different markets. Hammersmith Broadway is busy all day and is based around a ‘grab and go’ food offer serving customers using the transport hub and local offices. Fulham Broadway has a more mature offer with family dining linked into the cinema.

GCW has been retained as sole agent, providing leasing, asset management and lease advisory services on the centres.