Abrdn Asset Management is in talks to buy the Tandem Centre, a retail park in Colliers Wood, south west London from LaSalle Investment Management on behalf of Santander, for around £65 million, CoStar News understands.
The 117,100-square-foot park is located in south west London at the junction of the A24 Merantum Way and the A236 Christchurch Road.
Tenants include Next, New Look, Boots, WH Smith, Clarks, Sports Direct, JD Sports, TK Maxx, Lidl, HomeSense, Starbucks, Nando’s, Moss Bros and Holland & Barrett.
Abrdn invests in UK retail parks across a variety of its funds.
Knight Frank reports that UK retail property investment at £1.1 billion in the first quarter of the year was down on the final quarter of last year (£1.3 billion) as well as the 5 and 10-year averages. But retail parks and warehousing remain a bright spot, up 12% quarter on quarter and running hot with institutional investors, particularly the US's Realty Income Group who are attracted to the sector's fundamentals of "affordability, adaptability and accessibility".
According to CoStar's data, £270 million of retail parks traded in the first quarter, up 33% on a subdued final quarter but down 44% on the first quarter of 2023 when £479 million changed hands. Yields have stabilised at around 7.6%, significantly sharper than average shopping centre yields which are more than 10%.
Park Place Retail is understood to be advising LaSalle IM.
Abrdn and LaSalle IM declined to comment.