10th Oct 2014 08:13
LONDON (Alliance News) - Land Securities PLC Friday said it has sold its 50% stake in the Princesshay shopping centre and surrounding properties in Exeter for GBP127.9 million, and at the same time bought the remaining 50% of the Buchanan Galleries retail space in Glasgow for GBP137.5 million.
Both transactions were done with TIAA Henderson Real Estate.
The Exeter properties cover 589,000 square feet. Land Securities built Princesshay in 2007, and had a 50% stake in the assets, with The Crown Estates owning the other half. The transaction excludes Land Securities' 50% interest in 1-11 Sidwell Street, which is occupied by John Lewis, it said.
Land Securities' deal to buy TIAA Henderson out of Buchanan Galleries gived it full ownership of the 600,000 square feet of retail space in Glasgow, housing 90 retailers including Hollister, H&M, Mango, Lipsy, Thomas Sabo, Boux Avenue and John Lewis.
Land Securities' existing 50% interest in Buchanan Galleries currently produces a net rental income of GBP7.5 million, while Princesshay produced a net rental income of GBP7.6 million.
However, Land Securities has planning consent for a leisure and retail extension to Buchanan Galleries, which would extend the centre to 1.2 million square foot of retail, leisure and restaurant space, anchored by Marks & Spencer and John Lewis.
"These two transactions give us the opportunity to take full control in Glasgow ahead of the planned extension, while also exiting Princesshay in Exeter in line with our strategy of reshaping the retail portfolio to focus on the key themes of dominance, experience and convenience," Scott Parsons, Managing Director, Retail at Land Securities, said in a statement.
Land Securities shares were down 0.1% at 1,027.00 pence Friday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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