Land Securities Group has increased its stake in Bluewater Shopping Centre in a £120million deal.
The commercial property developer, which also owns the Piccadilly Lights, said that it has acquired an additional 17.5 per cent in the Kent-based shopping centre for from GIC.
This now leaves the FTSE 100-listed developer with an overall stake of 66.25 per cent in one of the UK’s leading retail destinations.
The commercial property developer, which also owns the Piccadilly Lights, said that it has acquired an additional 17.5 per cent in the Kent-based shopping centre for £120million from GIC
Landsec said the deal will add net rental income of £10.3million on a yearly basis.
The business saw its total annual rental income grow by 2.2 per cent to £606million last year.
Landsec added: ‘This transaction is in line with Landsec’s objective to grow its investment in major retail destinations, recycling capital from its recent non-core disposals in an earnings accretive way.’
According to the company’s latest annual report, retail destinations makes up 18 per cent of the group’s £10billion portfolio.
Bruce Findlay, managing director for retail of Land Securities, said: ‘This transaction underscores our ability to continue to create value through prime investments in scarce, major retail destinations with attractive return profiles.
‘Bluewater is one of the UK’s top retail destinations and a key part of our strategy to further build our relationships with key brands.’
Within the last year, the firm has sold two small retail outlets, a couple of leisure assets, a retail park, and the West 12 Shopping Centre in Shepherd’s Bush, London.
This is in addition to the sale of its hotels business for £400million to investment firms Ares Management and EQ Group.
Last month, the group revealed pre-tax losses slumped by 45.2 per cent to £341million in the 12 months ending March.
Its net assets declined by another £625million to around £6.4billion, having fallen by more than £900million the previous year, after further base rate hikes by the Bank of England.
Land Securities shares were up 0.56 per cent to 633p in Tuesday morning trading.
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