Property groups in retail asset swap
Land Securities adds to retail holdings
Property group Land Securities, one of the driving forces behind the Bullring, has added to its UK retail holdings with a deal to acquire the retail property assets of rival Slough Estates.
The two sides have agreed a property swap for their respective industrial and retail property portfolios.
Slough Estates’ retail holdings include 50 per cent interests in developments at Surrey Quays in Roterhithe; Clifton Moor, York; and Buchanan Galleries, Glasgow, as well as centres in Welwyn, Lewisham and Taplow. However, the companies did not specify exactly which assets form the basis of the talks.
Francis Salway, Land Securities’ group chief executive, said: “We announced earlier in the year our intention to exit the industrial sector, which represents less than 5 per cent of our portfolio, and concentrate on the sectors where we have market-leading positions.
“Given the quality of our industrial portfolio, together with our wish to acquire further retail properties, we sought a property swap as an efficient way to achieve this aim.
“We are delighted to have agreed this swap with Slough Estates and to have made such swift progress in our negotiations. The acquisition of Slough’s shopping centres will reinforce the strength of our position in the retail market.”
Ian Coull, Slough Estates’ chief executive, said: “We have excellent retail assets, but our retail portfolio is too small to give us meaningful sector diversification, and therefore it is attractive for us to exchange our shopping centres for core business space property.”
