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Property investor British Land said it has struck a deal to sell its 50% stake in the Meadowhall Shopping Centre in Sheffield for £360 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 £7 million (British Land share) earlier this year. Together these deals value the entirety of the Meadowhall Estate at £734 million, 3% above September 2023 book value,’ the firm said. Proceeds, after net debt of £200 million, are expected to total £156 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. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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