Sovereign buys shopping centre for £17.6m with plans to create 350 homes

Sovereign Housing Association has bought a former shopping centre in Farnborough with the aim of turning it into 350 new homes.Sovereign paid £17.6m to Knight Frank Investment Management (KFIM), on behalf of Local Pensions Partnership Investments (LPPI), for the Princes Mead Shopping Centre and two adjacent retail assets.Through the acquisition, Sovereign hopes to bring forward a residential-led, mixed-use regeneration in the heart of Farnborough town centre and the wider borough of Rushmoor.The purchase is part of Sovereign’s strategy to meet the growing demand for affordable housing and contribute to the regeneration of towns and high streets.The acquisition also reflects Sovereign’s investment strategy, which seeks opportunities to re-position high street and town-centre regeneration.The planned development sits at the heart of wider regeneration plans for Farnborough town centre, being brought forward by Rushmoor Borough Council and the Rushmoor Development Partnership.Their Civic Quarter masterplan incorporates a new leisure centre, civic hub, and park; 1,000 new energy-efficient homes; and new restaurant, food, and beverage areas.The deal sees KFIM and LPPI remain involved in the development project as overage partners.Tom Titherington, chief Investment and Development officer at Sovereign Housing Association, said: “We are delighted to have acquired our second shopping centre, with a view to the longer-term regeneration potential of the site.“As our high streets evolve, it becomes increasingly important for forward-thinking housing associations such as Sovereign to take a proactive role in regenerating our town centres, supporting our customers through the delivery of affordable homes and the successful re-imagination of our high streets.”John Styles, partner at Knight Frank Investment Management, said: “Having worked with Rushmoor to establish support for a substantial residential-led development scheme we are delighted to have sold the site to Sovereign Housing Association.“We are confident that Sovereign will take the project forward maximising the benefits, particularly in terms of affordable housing provision for Farnborough.”Adrian Peachey, partner at Montagu Evans, said: “As town centres evolve and new partnerships – both public and private – are necessary to deliver on these opportunities, dynamic new types of investors are stepping forward.“This is a deliverable development opportunity with strong alternative use value, which is supported by the local authority and forms part of their wider town centre regeneration plans.“Farnborough has an active and growing residential market and this opportunity will help rebalance the town centre offer as well as meeting local housing demand.”Sovereign manages over 61,000 homes across the UK, and aims to build around 2,000 new homes every year.Image: CGI rendering of the new homes at the Princes Mead Shopping Centre site in FarnboroughRead next: [WATCH] Simon Clarke visits first housing scheme since ministerial appointmentAre you a social housing professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.