Yoo Capital buys majority stake in Shepherd’s Bush Market
Yoo Capital Investment Management has acquired a 75.5% stake in Shepherd’s Bush Market, W12, from U+I for its Yoo Capital Fund II.
The move will see the firm form a joint venture with U+I, which retains a 24.5% stake in the market, to bring forward the regeneration of the west London market and on adjoining land create a mixed-use development.
U+I said the sale of the stake would allow it to realise future development management fees and in the next five years receive a potential share of the development profits.
Yoo Capital Investment Management has acquired a 75.5% stake in Shepherd’s Bush Market, W12, from U+I for its Yoo Capital Fund II.
The move will see the firm form a joint venture with U+I, which retains a 24.5% stake in the market, to bring forward the regeneration of the west London market and on adjoining land create a mixed-use development.
U+I said the sale of the stake would allow it to realise future development management fees and in the next five years receive a potential share of the development profits.
It has also enabled U+I to reduce its joint venture debt that was secured against the project, which has resulted in lowering the firm’s gearing by about 8.5% to circa 59%.
Richard Upton, chief development officer at U+I, said: “Yoo Capital has significant placemaking experience and is the right partner to accelerate the regeneration of Shepherd’s Bush Market, working closely with the local community and stakeholders to invest in supporting and enhancing this cornerstone of west London culture.”
He added: “The new capital arrangement will reduce debt for U+I as it continues to strengthen its balance sheet.”
Yoo chairman John Hitchcox said: “We are excited to be entering into a new era with Shepherd’s Bush Market. The last few months have taken their toll on businesses large and small and we look forward to investing in the market and the wider area to ensure that they come back stronger than ever.”
Lloyd Lee, managing partner at Yoo Capital, said: “The market is a well-loved London landmark and we are excited to work with the traders, community and London Borough of Hammersmith & Fulham to protect and celebrate the unique heritage and character of the market and further invest in it and the local area.”
Lee, speaking to EG, added that he felt the market had “lost a little bit of its polish from lack of investment” and that Yoo Capital wanted to find a way to invest in it to propel it forward.
“We also recognise that these markets have a lot to give back, not just to their customers,” he said. “Mixed-use environments that create jobs and affordable housing are important for cities like London, and if we can do that alongside the market then we will.”
U+I and its then joint venture partner Orion Land & Leisure abandoned previous plans to redevelop Shepherd’s Bush Market in 2016 after a four-year legal battle between the developers and local traders.
Orion walked away from the venture while U+I continued to manage the market alone.
Yoo Capital completed the first closing of its second fund in April, raising £200m. It was targeting a total fund size of £400m.
The firm is now in discussions about a second raising for the fund having been approached by institutional investors looking to deploy capital in the UK, Lee told EG.
Elsewhere in London, the firm, alongside Deutsche Finance International, is redeveloping the Olympia exhibition centre, W14. Earlier this year the pair secured an £875m development loan for the £1.3bn, 14-acre scheme in west Kensington from Goldman Sachs’ merchant banking division.
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