- The deal means the commercial property developer now has a total stake of 66.25%
Land Securities Group has increased its stake in Bluewater shopping center in a £120m deal.
The commercial property developer, which also owns Piccadilly Lights, said it has acquired a further 17.5 per cent of the Kent shopping center from GIC.
This now leaves the FTSE 100-listed developer with a total 66.25 per cent stake in one of the UK’s leading retail destinations.
The commercial property developer, which also owns Piccadilly Lights, said it has acquired a further 17.5 per cent in the Kent-based shopping center for £120m from GIC.
Landsec said the deal will add net rental income of £10.3 million a year.
The company saw its total annual rental income grow by 2.2 per cent to £606m last year.
Landsec added: “This transaction is in line with Landsec’s objective to increase its investment in key retail destinations, recycling capital from its recent non-core disposals in a way that increases earnings.”
According to the company’s latest annual report, retail destinations account for 18 per cent of the group’s £10bn portfolio.
Bruce Findlay, managing director of retail at Land Securities, said: “This transaction underlines our ability to continue to create value through blue-chip investments in high-stakes, high-value retail destinations with attractive return profiles.”
“Bluewater is one of the UK’s leading retail destinations and a key part of our strategy to continue to strengthen our relationships with key brands.”
In the last year the company has sold two small retail outlets, a couple of leisure assets, a retail park and the West 12 shopping center in Shepherd’s Bush, London.
This comes on top of the sale of its hotel business for £400m to investment firms Ares Management and EQ Group.
Last month, the group revealed pre-tax losses fell 45.2 per cent to £341m in the 12 months to March.
Its net assets fell by a further £625m, to around £6.4bn, after falling by more than £900m the previous year, following further base rate rises by the Bank of England.
Real Estate Stocks They rose 0.56 per cent to 633 pence in Tuesday morning trading.