Southwark Councill has acquired the former Toys R Us site at 760 Old Kent Road as part of its plans to secure the Bakerloo Line extension and increase housing supply in the borough.
The 2.59-acre site was sold by CBRE, on behalf of the Joint Fixed Charge Receivers. It is currently occupied by Lidl on a lease expiring in 2028.
It will become one of two new underground stations on the Old Kent Road, with Southwark Council planning to build at least 500 homes over the station.
This is the latest purchase by Southwark as part of its plans to provide 11,000 new council homes by 2043. In 2019 it acquired the former Currys PC World site at 589 Old Kent Road for c550 homes, 593-613 Old Kent Road for 110 homes and 711-717 Old Kent Road for 200 homes and commercial space. Earlier this month Southwark Council’s updated Old Kent Road Area Action plan was launched for consultation, with further regeneration and provision of housing, commercial, community, cultural and green spaces all part of the proposed changes.
Montagu Evans has advised Southwark Council on most of the site acquisitions needed to fulfil its housing commitments, including this deal. All acquisitions were of properties with existing investment income but with medium to long term opportunities to redevelop.
Sam Blake, Partner at Montagu Evans, said: “This is an important strategic site for Southwark, accommodating a new tube station and increasing housing supply to help meet its ambitious targets. Better transport infrastructure will be a huge advantage to the area and this this investment should make the process much smoother as well as providing the Council with a good income stream while longer-term plans are being worked up.”
Jonathan Allen, Residential Development at CBRE, said: “The disposal of 760 Old Kent Road to Southwark Council followed a competitive open marketing campaign, symbolising strong current market appetite for assets which benefit from short term income, underpinned by improving infrastructure and significant residential latent redevelopment value. This important site is a key part of the Old Kent Road masterplan having been identified as a location for a new underground station for the proposed Bakerloo line extension. This purchase follows the news that TfL remain committed to delivering the extension, and that their immediate priority is safeguarding the route from Elephant & Castle to Lewisham; emphasising the importance of the project in transforming the lives of those living and working on Old Kent Road.”