Land Securities has sold its stake in the Bullring shopping mall in Birmingham, England, to Australia’s Future Fund for £210 million (S$482 million) in one of the biggest UK retail property deals of 2009.
News of the sale comes three weeks after Reuters reported Land Securities, Britain’s largest property company, was in advanced talks to sell its one-third interest in the centre to the Australian sovereign wealth investor.
The price achieved reflects a net yield of 6.85 per cent.
‘The absence of operational control over the Bullring made it an unusual asset within Land Securities’ portfolio where we look to create value through successful development and active management of properties,’ said Richard Akers, managing director of Land Securities Retail.
The Bullring had performed well for the group, Mr Akers also said, adding the sale proceeds would increase the group’s flexibility to exploit future acquisition opportunities.
Land Securities shares shed one per cent to trade at 681 pence by 0843 GMT, against a 0.6 per cent fall in the FTSE 100 Index . Continue reading
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