British Land sells 50% Meadowhall stake for £360m
The transaction is expected to complete in July 2024 and the proceeds will be used for general corporate purposes including reinvestment into retail parks
British Land has announced that it has sold its 50% stake in the Meadowhall shopping centre in Sheffield.
The company has revealed it has sold its stake to Norges Bank Investment Management for £360m.
This follows the sale of some ancillary land by the Joint Venture for £7m (British Land share) earlier this year.
Together these deals value the entirety of the Meadowhall Estate at £734m, 3% above September 2023 book value.
This deal comes as part of British Land’s strategy to focus on retail parks and reduce exposure to covered shopping centres.
The transaction is expected to complete in July 2024 and the proceeds will be used for general corporate purposes including reinvestment into retail parks.
Simon Carter, chief executive of British Land, 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.”