Pension fund puts Uxbridge mall up for sale

Mars Pension Fund has put the Pavilions shopping centre in Uxbridge, west London, up for sale for £34.4m. The pension fund has instructed Knight Frank to seek offers for the 500,000 sq ft shopping centre. It has 76 stores and is held on a long leasehold from the London Borough of Hillingdon for a term of 147 years, expiring 3 March 2133. The Pavilions generates gross income of nearly £4.2m per annum and net income of around £3.1m pa. Anchor tenants include Primark, Tesco and Marks & Spencer. The WAULT is 5.7 years to break and 8.8 years to expiry. Some 88% of the total gross income is secured against national tenants. A 50,000 sq ft portion of the site, at Chequer’s Square, is marketed with the potential for residential conversion. Marketing materials suggest that a mixed-use development could accommodate either a private-sale, BTR, co-living or hybrid scheme of up to 250 homes. The scheme could range up to 11 storeys across two principal residential blocks. In the marketing materials, Knight Frank said a mixed-use development on the site would “result in a significant improvement to the rest of the commercial ownership, improving leasing tension by removing retail floorspace from circulation and adding a dynamic mix of living uses to enhance footfall and retail spend with an influx of young, affluent new residents”. To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG View lettings comparables for the Uxbridge retail market >> Image from Knight Frank