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(Alliance News) - Land Securities Group PLC said on Wednesday it has acquired an additional 25% stake in the Bluewater shopping mall, south east of London, for GBP172 million.
The London-based property developer said the purchase from Lendlease Retail Partnership represented a net initial yield of 8.2% and an equivalent yield of 8.3%.
In a separate deal, Landsec said it will sell 25% of this share - a 7.5% stake - to co-owner M&G PLC, a London-based investment manager, for its pro rata share of the purchase price with the deal completing in April 2022. After this, Landsec's ownership of Bluewater will be 49%.
Bluewater is located in north west Kent and has an annual turnover in excess of GBP1 billion and a catchment population of 3.9 million people, Landsec explained. Bluewater houses retail brands including Apple Inc, Marks & Spencer Group PLC, and Associated British Foods PLC's Primark.
Managing Director of Retail Bruce Findlay said: "We're making this acquisition at a time when retail values and rents are starting to stabilise. Together with our co-owners, we have a clear vision for Bluewater which builds on what is already a thriving retail destination. This investment underlines our strategic commitment to major retail destinations that offer something that can't easily be replicated online."
Shares in Landsec were down 0.3% at 750.60 pence on Wednesday morning in London. M&G shares were up 0.5% at 192.95p.
By Heather Rydings; heatherrydings@alliancenews.com
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