Land Securities buys 30% of Bluewater shopping centre

25th Jun 2014 07:48

Real estate group Land Securities is spending £656m on a 30% stake in Bluewater, one of the largest shopping centres in the UK.The company, which acquired the interest from Lend Lease, said it is part of its "continued strategic shift of our retail portfolio towards dominance, experience and convenience".Land Securities said that overall net initial yield after the expiry of rent-free periods is 4.1%.Bluewater, located in Kent, attracts 27m visitors each year to its 330-plus shops, cafes, bars and restaurants, and its catchment is said to be one of the most affluent in the country. The centre is 1.8m square feet and includes 13,000 parking spaces.Land Securities also acquired the full asset management rights for the centre and 110 acres of surrounding land for £40m.The acquisition leaves Land Lease Retail Partnership with a 25% stake in Bluewater, while M&G Real Estate and GIC own 35% and Aberdeen Asset Management hold 10%."This acquisition, which increases our exposure to the South East, follows the recent disposals of Overgate, Dundee and The Bridges, Sunderland, and demonstrates the pace at which we are delivering on our strategy," said Scott Parsons, Managing Director of Land Securities' Retail Portfolio.He said that Land Securities sees the opportunity to improve returns at Bluewater by reducing the void rate of 5.3% in line with the company's retail portfolio average of 2.6%. BC