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British Land winds down stake in Sheffield shopping centre

Published 20/05/2024, 07:57
© Reuters.  British Land winds down stake in Sheffield shopping centre
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Proactive Investors - British Land Company PLC (LON:BLND) has agreed to sell a stake in Sheffield’s Meadowhall Shopping Centre as part of a strategic refocus on retail parks.

Some 50% of the covered shopping centre is to be sold to Norges Bank Investment Management for £360 million, British Land announced on Monday.

“We have had a successful partnership with Norges over many years and are delighted to continue to work alongside them,” chief executive Simon Carter commented.

This leaves 93% of British Land’s portfolio in the “preferred” retail park, campus and London urban logistics segments.

Proceeds are set to total £156 million after net debt of around £200 million is taken into account, valuing the shopping centre, alongside its distribution centre and hotel, at £734 million.

British Land will remain the shopping centre’s asset manager and continue to earn fees after Meadowhall generated £59 million in income last year.

“We will continue to grow our retail park portfolio,” Carter added, with the sale set to knock 0.6p off full-year per share earnings after being completed in July.

This includes “with low capex requirement parks [that] offer attractive cash returns,” he said, “at 99% occupancy we are delivering strong rental growth”.

Read more on Proactive Investors UK

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