LandSec and TH in £266m shopping centre swap
Published: 10 October, 2014
Land Securities exits Princesshay, Exeter and takes full control of Buchanan Galleries, Glasgow
Land Securities has exchanged contracts to sell its 50 per cent stake in Princesshay shopping centre and surrounding properties in Exeter totalling 589,000 sq ft, to TIAA Henderson Real Estate for £127.9m. And at the same time it is buying TIAA Henderson Real Estate's 50 per cent stake in Buchanan Galleries, Glasgow for £137.5 million. This takes Land Securities' interest in Buchanan Galleries to 100 per cent.
Land Securities' existing stake in Buchanan Galleries currently produces a net rental income of £7.5m, while Princesshay produces a net rental income of £7.6m.
Buchanan Galleries currently totals 600,000 sq ft of prime retail space which is home to 90 retailers including Hollister, H&M, Mango, Lipsy, Thomas Sabo, Boux Avenue and John Lewis. Land Securities has planning consent for a leisure and retail extension to Buchanan Galleries, which would extend the centre to 1.2m sq ft of retail, leisure and restaurant space anchored by M&S and John Lewis.
Princesshay in Exeter was developed by Land Securities in 2007 and, together with surrounding properties, is owned jointly with The Crown Estate. The transaction excludes Land Securities' 50% interest in 1-11 Sidwell Street which is occupied by John Lewis.
Scott Parsons, Land Securitiesí managing director, retail 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. Our planned retail development programme, of which the proposed extension to Buchanan Galleries forms part, will create the very best shopping environments in some of the UK's top retail destinations."