Land Securities has sold its 50 per cent stake in Bristol’s Cabot Circus shopping centre to Axa Real Estate in a £267.8 million deal, which also includes Quakers Friars and a number of surrounding city centre shops.
Land Securities developed Cabot Circus in a joint venture with Hammerson PLC, with the completed centre opening in 2008. The 830,000 sq ft shopping centre has been praised as one of the most successful retail-led city centre urban regeneration projects in the country, having won numerous awards for its seamless integration into the city centre.
Managing director of retail at Land Securities, Scott Parsons, explains that the deal very much ties in with the firm’s strategic planning outlook.
He says; “The sale of Cabot Circus, Quakers Friars and surrounding high street shops, coming so soon after the disposal of The Bridges in Sunderland and the acquisition of Bluewater in Kent, demonstrates the pace at which Land Securities is reshaping its retail portfolio to focus on the key themes of dominance, experience and convenience.
“This portfolio reshaping is set to continue with our planned retail development programme to create the very best shopping environments which reflect evolving consumer behaviour.”
He added that Land Securities highly appreciated the support of the local community and that he believes it has left a positive legacy for Bristol and the surrounding area.
Axa Real Estate also gains the 170,000 sq ft luxury goods and dining quarter development Quakers Friars and 370,000 sq ft of adjoining retail units as part of the deal. When last evaluated, the portfolio was found to produce a net rental income of £17.3 million for Land Securities.
While the sale is conditional on EU merger control approval, neither firm seems to be overly concerned that any last minute problems will arise with the deal. Should this be the case, it appears that Axa Real Estate has got something of a bargain in the Bristol Partnership stake acquisition as, at a cost of £267.8 million, it now holds 50 per cent of one of the most sought after properties in Bristol.
