British Land has finally found a purchaser for a 50 per cent stake in its Meadowhall Shopping Centre, near Sheffield. London & Stamford Property and an overseas investor is paying £587.7m, reflecting an initial yield of 6.75 per cent.
The deal values Meadowhall at £1.175bn. When British Land first tried to sell a stake in the centre, in May 2007, it was valued at £1.75bn.
British Land will continue to act as manager of Meadowhall, and in addition it will retain ownership of 74 acres of surrounding development land, although the new joint venture will have the option to acquire it at a later date at market value.
Head of retail, Andrew Jones, said: “This transaction reduces our exposure to our largest retail asset whilst allowing us to retain a substantial share in the future upside from long and strong cashflows. Meadowhall is truly a unique asset with enduring occupier appeal and in which we see great value. We look forward to delivering further value with our partners in the next few years.”
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