Sovereign Housing Association has purchased the Princes Mead Shopping Centre and two adjacent retail assets in Farnborough for £17.6 million.

The 61-000-home housing association acquired the 7.77 acre site from Knight Frank Investment Management (KFIM), on behalf of Local Pensions Partnership Investments (LPPI). The deal sees both KFIM and LPPI remain involved in the development project as overage partners.

Sovereign plans to deliver over 350 new homes on the town centre site, creating a residential-led, mixed-use regeneration of the central site in the borough of Rushmoor.

The housing association says the purchase is part of their strategy to meet the growing demand for affordable housing and contribute to the regeneration of towns and high streets; delivering quality homes in well-connected communities.

The planned development forms part of wider regeneration plans for the 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.

Tom Titherington, Chief Investment & 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.”