Asset manager and developer Quadrant has secured the disposal of the freehold of Hersham Green Shopping Centre in Surrey to Waitrose.
The 54,000 sq ft scheme occupies a 4.4 acre plot and includes 16 retail units. The site is anchored by a 30,000 sq ft Waitrose supermarket. It is understood that Waitrose paid in excess of £22m for the property. The sale was made on behalf of LaSalle Investment Management (LaSalle IM), which allows it to crystalise a profit without having to secure planning permission to redevelop the site for alternative uses.
Located at Molesey Road, the Waitrose store includes home delivery services as well as a dedicated John Lewis click-and-collect point. According to the retailer, the acquisition cements its physical presence in key locations as it continues a wider £1bn, multi-year investment into its UK store portfolio.
Waitrose branch manager Barry Spencer said: “We are pleased to have secured the future of our Hersham store. This acquisition reflects our long-term commitment to the town and provides certainty for our customers and our Partners, who work hard to serve the local community. We have been part of Hersham for two decades, and we look forward to playing a role in the town’s continued success for many years to come.”
Quadrant acquired the shopping centre in 2021 as part of its joint venture with LaSalle IM for £17m from vendor Aviva Investors. The acquisition – which includes a surface car park of 223 spaces – equated to a net initial yield of 5.18%.
At the time, the lease was set to expire in four years which would allow a redevelopment of the site subject to securing planning approval.
Hybrid proposals were lodged in 2024 to redevelop the centre, including transforming the car park for residential accommodation and the demolition of the mall itself. The supermarket was to be retained and refurbished with a
new first floor extension while the apartments were reduced from 224 to 109 units across several blocks rising three to five storeys.
However, Elmbridge Borough Council rejected the plans, citing that the proposed scheme did not demonstrate its lack of viability at supporting affordable housing. The refusal was also made based on grounds of the loss of
light and privacy for several neighbouring homes.