GL Hearn, part of Capita Real Estate and Infrastructure, has been advising Tesco on the sale of the Morning Lane Superstore in Hackney to Hackney Council.
The sale is part of Tesco’s broader property portfolio management strategy to enable an enhanced customer experience while also ensuring all sites are delivering maximum value.
Hackney Council have purchased the site, which following redevelopment, will feature a smaller Tesco superstore and provide new homes, offices and shops. It is anticipated this could provide over 1,500 new jobs, 270,000 sq ft of commercial space and 245,000 sq ft for new homes, of which a minimum of 20% would be affordable.
The deal was approved at a council meeting on 23 January 2017, the planning application process for the site is expected to take between 18 months and two years.
Steve Rigby, Chief Property Officer at Tesco, said: “Our business started in Hackney and we are proud of our connection to the local area so we are delighted to be working with the Council on this project. We have looked at a number of proposals and held discussions with several parties but Hackney Council’s proposal align best with our aims of releasing significant value in the site, enabling regeneration and maintaining a store to serve the local community.
“Hackney Morning Lane is an example of how we are looking at our property portfolio to identify opportunities where we can release value whilst enhancing the experience for customers.”
Richard Kitching, development director for GL Hearn said: “We have been advising Tesco on the sale of this central site and working closely to ensure the best proposal is selected in line with the aims of the project.
“We are committed to ensuring that we unlock the most value for our clients and have been carefully reviewing the proposal put forward by Hackney Council in line with Tesco’s vision of providing regeneration for the local community.”
Capita Real Estate and Infrastructure work with public and private sector organisations to design, build and optimise their real estate and infrastructure assets. From thought to finish, we apply our combined expertise to achieve more from the entire built environment.
We build competitive advantage through intelligently applied real estate and infrastructure solutions and enhance our clients’ standing in a forever-changing world.