British Land has announced that it is has completed a £733 million exchange of its joint venture properties with Tesco.
Under the terms of the deal British Land has sold its 50 per cent interest in the joint venture portfolio, which comprises 21 foodstores, to Tesco and in return has acquired Tesco’s 50 per cent interest in two joint venture portfolios largely consisting of Tesco-anchored shopping centres and retail parks.
The transaction is in line with British Land’s overall strategy to evolve its retail portfolio and reduce its exposure to foodstores while, in turn, increasing its exposure to multi-let shopping centres and retail parks.
Head of Retail and Leisure at British Land, Charles Maudsley (pictured), said: “This mutually beneficial transaction clearly demonstrates the great relationship we enjoy with Tesco.
“It plays to our strengths of managing multi-let assets and gives Tesco more control of their stand-alone portfolio.
“We see significant opportunity to add value and drive returns through asset management and development”.
Overall, the transaction gives British Land full ownership of 730,000 sq ft of shopping centres and 660,000 sq of retail parks.
The shopping centres are the 320,000 sq ft Serpentine Green in Peterborough, Leicester’s 310,000 sq ft Beaumont Leys and the 100,000 sq ft Lisnagelvin centre in Londonderry.
The retail parks are the 270,000 sq ft Kingston Centre in Milton Keynes, York’s 240,000 sq ft Clifton Moor and Bury’s 150,000 sq ft Woodfields Retail Park.
Financially, British Land will gain a £2 million increase in net rental income and an £8 million reduction in net interest.
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