Land Securities does property swap with TIAA Henderson

10th Oct 2014 10:40

Property developer Land Securities is selling its stake in a shopping centre in south-west England and buying a Scottish mall.Land Securities has exchanged contracts to sell its 50% stake in Princesshay shopping centre and surrounding properties in Exeter totalling 589,000 sq ft to TIAA Henderson Real Estate for £127.9m.It has also simultaneously agreed to buy TIAA's 50% stake in Buchanan Galleries, Glasgow, for £137.5m, meaning it will own all of the development.Land Securities' existing 50% interest in Buchanan produces a net rental income of £7.5m, while Princesshay generates £7.6m.Buchanan is occupied by 90 big high street names such as Hollister, H&M, Mango, Lipsy, Thomas Sabo, Boux Avenue and John Lewis.Land Securities is planning a leisure and retail extension to Buchanan, which would extend the centre to 1.2m sq ft of retail, leisure and restaurant space in central Glasgow, anchored by M&S and John Lewis.Scott Parsons, Managing Director, Retail at Land Securities, said, "These two transactions give us the opportunity to take full control in Glasgow ahead of the planned extension, while also exiting Princesshay in Exeter in line with our strategy of reshaping the retail portfolio to focus on the key themes of dominance, experience and convenience."Shares fell 4p or 0.39% to 1024p in mid-morning trading in London.