The Walnuts Centre – Greater London, UK

The Walnuts Centre is 152,000 sq ft and houses approximately 40 tenants. The centre was opened in 1970 and offers 26 covered units and 17 uncovered. The centre includes one of the town’s main car parks (525 spaces), which is included in the investment. Orpington is a well-established, high income commuter town forming the south eastern edge of London located within the M25. It is an important centre for local convenience and discount shopping, and the second largest town in the borough of Bromley. Rail services connect Orpington to London City in 15 minutes.

The investment has institutional characteristics such as its location in a strong South-East catchment; it has been under managed for over 10 years and offers excellent asset management potential. In conjunction with Walnuts, an adjacent land parcel was acquired, which offers the opportunity to develop highly demanded modern, retail and entertainment space.

Management has secured long-term leases with Odeon Cinemas. Moreover, final negotiations are ongoing with National brands as well as a high credit budget hotel tenant and two floors of obsolete office space will be converted for the hotel’s use.

There is limited vacancy, a strong middle income more recession proof tenancies, and the current rental level has upside as it is notably below comparable cities. As such the property offers a very robust, defensive cash flow with a realistic likelihood of rental growth. Furthermore, the acquisition of the adjoining land site will facilitate transformational change within the wider property. The investment is financed by HSBC.

This investment has now been sold. For further information click here