Unibail-Rodamco-Westfield is in talks to take control of the redevelopment of the centre of Croydon in south London in a move that would see it buy out long-term 50:50 joint venture partner Hammerson, CoStar News can reveal.
The sale would terminate decade-long plans for the partners to combine their separate interests in Croydon's two main shopping centres – Centrale in Hammerson's case and the Whitgift Centre, where URW is development partner for the Whitgift Foundation – to build out what would be London's last major retail destination. The Whitgift Foundation is a charity that dates back 426 years to the Hospital of the Holy Trinity and uses its land and assets to help people in Croydon.
The plans have been through several iterations as the partners reacted to worsening sentiment around physical retail as well as the pandemic over the past 10 years.
The partnership was formed after a long-running battle for control of the site in 2013 with plans drawn up for an £1.4 billion redevelopment that first gained outline consent in 2014.
In October of last year news emerged that the mall would also include a hotel and offices, with Jean-Marie Tritant, the CEO of Unibail-Rodamco-Westfield, telling the Sunday Times he was still committed to redeveloping the Whitgift Centre.
Hammerson and Unibail-Rodamco-Westfield declined to comment.
Retail real estate investment trust Hammerson said it was optimistic of reaching its £500 million asset disposal target in its most recent full-year results.
Part of its 2021 strategy to turn around the business includes a disciplined disposals plan that would focus the group on a core portfolio of urban estates, reducing indebtedness and generating capital for redeployment into core assets.
Hammerson completed £195 million of disposals in 2022, including the sale of its Leeds Victoria Gate and Victoria Quarter shopping centres in Leeds for £120 million and its 50% share of Silverburn in Glasgow for £70 million.