A homelessness charity says it will be able to help more rough sleepers around the capital after selling a centre in Shepherd’s Bush .

St Mungo’s has agreed to sell its Broadway Centre to Shepherd’s Bush Market developers Orion Shepherd's Bush for £2.75 million.

As part of the deal the charity will continue to use the centre and the neighbouring Market Lane Hostel rent free for its No Second Night Out project - which helps 1,500 people a year - until the regeneration of Shepherd’s Bush Market begins .

However, that could be some time off yet, as market traders won a Court of Appeal ruling over Compulsory Purchase Orders on March 18.

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The decision by St Mungo’s comes after the charity renewed and upgraded many of its west London hostels and centres, allowing it to continue running its current services without need for its Broadway Centre.

It plans to use proceeds of the sale to expand the services it offers homeless people and rough sleepers across London.

'More services for homeless people'

St Mungo’s chief executive Howard Sinclair said: “The sale of the Broadway Centre is a great deal for people that use our centres and hostels, and it will allow us to provide more services to homeless people and rough sleepers in Hammersmith , Shepherd’s Bush, and across the capital.

“At the same time, we will be able to keep using the hostel rent free to run our ‘No Second Night Out’ project – which helps around 1,500 people a year at the Broadway Centre alone. As a result of ‘No Second Night Out’, and the centre, more than 800 people have not had to sleep rough again.

“With the sale of the centre, we will be able to help many more rough sleepers and homeless people around London.”

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Following its purchase of Market Lane Hostel from Peabody Housing Association, Orion also funded the £1.2m refurbishment of Hope Gardens Hostel in Hammersmith. This will host the services currently provided at Market Lane Hostel.

Richard Olsen, chairman of Orion Shepherd’s Bush, said: “Homelessness is an issue that affects all areas of London.

"Over the last two years, our relationship with St Mungo’s has allowed them to grow and provide more services for homeless people. Our company is very proud to support the work they do across the Capital.

'Part of market regeneration plans'

“As the owners of Shepherd’s Bush Market, we want to support the local community as much as possible, and we will continue to work with St Mungo’s.

“The purchase of Broadway Centre is the next step towards the regeneration of Shepherd’s Bush Market, which has long been in decline.

“We remain committed to providing a vibrant and successful market that will return it to its rightful place at the heart of the local community.”