Council buys Purley Way retail and leisure park for £53m
The London Borough of Croydon has bought the Colonnades leisure and retail park on the Purley Way from a private investor for £53m.
The 161,697-sq ft park generates £1.4m pa from eight existing tenants: Costa Coffee, Kidspace, McDonald’s, Nuffield Health, Oxygen Freejumping, Pizza Hut, Premier Inn and Wickes. Three further units including a McDonald’s drive-thru are under construction and due for completion in May 2019.
The acquisition is the first since a £100m fund was approved as part of the asset investment strategy signed off by the council last month. It is proposed the existing estate and asset management contractors for the estate will be retained and help develop further opportunities within the portfolio.
Councillor Simon Hall, cabinet member for finance and resources, said: “We’re investing in our borough, for our borough. This is a solid investment on a well-performing asset, enabling us to bring in additional income to fund core services. As government grant funding for local authorities remains uncertain, we’re doing what we can to ensure we can provide services our residents expect and deserve.”