Land Securities has bought a portfolio of three outlet centres from Hermes Investment Management for £332.5m, generating net rental income of £21.6m.
The portfolio comprises Freeport Braintree in Essex, Clarks Village in Street, Somerset and J32 in Castleford, Yorkshire, and now establishes Land Securities – which already owned Gunwharf Quays and Hatfield Galleria – as the leading owner-manager of outlets in the UK.
The acquisition follows the recent disposals of The Printworks in Manchester and The Cornerhouse in Nottingham and is in line with the company’s strategy of recycling capital into family focused retail and leisure destinations.
Scott Parsons, managing director retail at Land Securities, said: “Our retail strategy is focused on the destinations that offer the most vibrant and engaging experiences for retailers and consumers alike. This acquisition adds three new destinations to our portfolio, where we see potential for growth.”
Chris Taylor, head of private markets at Hermes Investment Management, said: “The sale of the portfolio is an excellent result for the fund and allows us to redeploy capital into markets where we have best-in-class asset management capabilities.”