Key Property Investments, the owners of Elephant & Castle shopping centre, has sold the 1960s shopping mall to developers Delancey and APG.
Under the proposed plans, the mall, which was the first covered shopping centre in Europe when it opened in 1965, will be fully demolished and re-built as part of a wider redevelopment plan.
Key Property Investments, a joint venture between St Modwen and Salhia Real Estate bought the centre in May 2002 for £29.25 million.
Bill Oliver, chief executive of St Modwen said: “Both St Modwen and Salhia believe that the price offered fully reflects the potential of the scheme and provides certainty of exit, while crystallising a significant profit for our shareholders.
“We believe this is a very positive outcome which also leaves us well placed in terms of capital and human resources to focus on our other significant regeneration projects in London and the regions.”
Jamie Ritblat, chief executive of Delancey, said: “We are delighted to be continuing the delivery of a significant residential investment strategy in Elephant & Castle with such a high calibre partner as APG; particularly at a time when the affordability of housing in London is an increasing concern.
“Combining an exceptionally well-connected zone 1 location with zone 3 pricing, Elephant & Castle is one of Europe’s foremost regeneration projects, and represents a hugely exciting project for us to be moving forward.”
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