(Alliance News) - Property investor British Land said it has struck a deal to sell its 50% stake in the Meadowhall Shopping Centre in Sheffield for GBP360 million as it continues to fine-tune its portfolio towards retail parks.
The Sheffield asset was sold to partner Norges Bank Investment Management.
"This follows the sale of some ancillary land by the joint venture for GBP7 million (British Land share) earlier this year. Together these deals value the entirety of the Meadowhall Estate at GBP734 million, 3% above September 2023 book value," the firm said.
Proceeds, after net debt of GBP200 million, are expected to total GBP156 million. Those funds will be used for "general corporate purposes including reinvestment into retail parks".
The deal is expected to be sealed in July.
Chief Executive Simon Carter said: "We have had a successful partnership with Norges over many years and are delighted to continue to work alongside them as asset managers of the centre. Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and London urban logistics. We will continue to grow our retail park portfolio; with low capex requirements parks offer attractive cash returns and at 99% occupancy we are delivering strong rental growth."
Shares in the company traded 0.2% lower at 402.42 pence each in London on Monday morning.
By Eric Cunha, Alliance News news editor
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British Land (BLND)