New developers buy Observatory and Queensmere Shopping Centres in Slough

The company behind the Horlicks Quarter redevelopment has signed a deal to buy the Observatory and Queensmere Shopping Centres in Slough.

Berkeley Homes has agreed to acquire the two town centre shopping malls, with the deal due to complete later this summer.

This is the developer’s second major regeneration project on a Slough site and signals ‘a major step forward’ in the council's ambitions to drive investment and regeneration across the town.

Berkeley Homes is purchasing the Observatory and Queensmere Shopping Centres from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

ADIA, a sovereign wealth fund owned by the Emirate of Abu Dhabi, acquired the shopping centres in a deal worth £130million in 2016.

Outline planning permission was secured in 2021 to demolish the ageing Queensmere complex and replace the 9.2-acre site with 1,600 homes, 40,000 sq ft of office space, alongside new retail, leisure and entertainment offerings.

This project was being carried out in partnership with property development firm British Land. This stalled during discussions with the council over a Section 106 agreement to determine the amount of affordable housing proposed for the site.

In October 2024, the council confirmed ADIA had been looking to move on and ‘sell its stake’, and a British Land spokesperson confirmed a Section 106 agreement would be finalised by the end of 2024.

The council hoped construction work on Queensmere would begin in 2025 once a new developer presented a detailed plan and ‘quickly’ reached a deal.

Berkeley Homes will take forward the existing proposals to deliver a residential-led mixed-use development with community spaces, leisure facilities, and restaurants and bars. 

The scheme will also introduce new pedestrian routes and improve connectivity between the station, Wellington Street, and the southern end of the High Street.

There are no immediate plans to redevelop the adjacent Observatory Shopping Centre, which will continue to operate as a shopping venue, and the redevelopment is likely to take place in a phased manner.

Berkeley Homes, Oxford and Chiltern managing director Elkie Russell said: "We are thrilled to continue playing an integral role in the regeneration of Slough. 

"Our ambitious transformation of the iconic Horlicks Factory into a superb collection of new homes and residents’ facilities, has already created a vibrant new neighbourhood in the town centre.

“By acquiring this additional site, bringing forward new homes and breathing life into the high street, we will continue to support the long-term growth and success of Slough.

“Our vision is to enhance and support a thriving, sustainable town centre that reflects the energy and diversity of the local community "

Further details about the proposed development, including timelines for proposed works, will be shared in the coming months.

Slough Borough Council’s executive director of regeneration, housing and environment, Pat Hayes, said: “It is brilliant news for Slough that top UK residential developer Berkeley have bought the Queensmere and Observatory shopping centres from the Abu Dhabi Investment Authority.

“Berkeley are already delivering the award-winning Horlicks factory scheme, and they are a company with the financial clout, expertise and ambition to deliver a comprehensive transformation of the High Street.

“The council has worked hard to help facilitate this sale to enable the regeneration of the High Street to be brought forward, and we look forward to continuing our successful relationship with Berkeley.

“With this announcement and the start of work on the former Thames Valley University site, Slough town centre is on the cusp of transformation.”