London Real Estate Giant Acquires Prime Team Valley Shopping Park in Landmark £100m+ Deal
The popular shopping park Retail World at Team Valley in Gateshead has been snapped up by London-based real estate company Ashtrom Properties UK Limited (AP UK) in a deal valued at over £100 million. This acquisition represents one of the most significant regional real estate transactions of the past year, highlighting strong investor confidence in well-positioned retail assets.
Historic Site Transformed into Retail Hub
Originally established as a manufacturing park in the 1930s, Retail World was put up for sale by its previous owners, Ares Management, last autumn. Ares had acquired the site a decade earlier from UK Land Estates, along with retail parks in Dundee and Derby, in a transaction worth up to £291 million.
Under Ares' ownership, the park underwent substantial investments, completed in 2019, which expanded its offerings to include numerous new food and drink outlets and retail units. Today, Retail World boasts 391,000 square feet of space across 24 units, housing more than 30 diverse brands. Key anchor tenants include M&S Food, Hotel Chocolat, Boots, Metro Bank, TK Maxx, Currys, Dunelm, Costa Coffee, and B&M Bargains, solidifying its reputation as a standout retail destination in the North East.
Strategic Expansion for AP UK
AP UK, a privately owned real estate firm specializing in prime commercial and office developments, has added Retail World to its expanding portfolio. The company entered exclusive talks with the owners at the end of last year, culminating in this landmark deal. AP UK's other notable projects include Exchange Flags in Liverpool, No. 8 First Street in Manchester, Central Square in Leeds, and Colmore Gate in Birmingham.
Guy Lewinsohn, CEO of AP UK, expressed enthusiasm about the acquisition, stating, "We are delighted to have completed the acquisition of Retail World at Team Valley. This investment aligns with our strategy to expand our UK footprint and invest in high-performing regional assets."
Legal and Market Insights
Law firm Freeths advised AP UK on the acquisition, with the transaction led by their Real Estate team, including director Ayesha Qayum, partners Craig Jones and Daniel Abrahams, and senior associate Sophie Moonshine, supported by the corporate team. Sarah Jelly, director and head of legal at AP UK, praised the collaborative effort, noting, "Navigating the intricacies of this corporate acquisition was a collective effort of which the AP UK team are very proud."
Ms. Qayum added, "It has been a privilege to advise AP UK on this landmark acquisition of Retail World. Acting on such a significant transaction for our client has been incredibly rewarding."
The park was marketed by Savills and Vedra Property Group, who emphasized that the sale reflects ongoing investor confidence in the retail park sector. They highlighted the format's proven role in serving communities and adapting to evolving consumer behavior, driven by strong tenant demand and robust footfall.
This deal underscores the enduring appeal of prime retail locations in regional markets, demonstrating how strategic investments can enhance community-serving assets while driving economic growth.
