Land Securities confirms sale
21 September 2009
For immediate release
Land Securities Group PLC ('Land Securities')
LAND SECURITIES CONFIRMS SALE OF BULLRING SHARE
Land Securities today announces that it has sold its one third ownership of the Bullring, Birmingham to the Future Fund, an investment fund for the Australian Government, for £210 million, reflecting a net yield of 6.85% after settlement of outstanding rent reviews.
The 1.2 million sq ft (110,000 sq m) shopping centre opened in Birmingham's city centre in Autumn 2003 to global acclaim and has been consistently ranked in the UK's Top Five retail destinations since its completion. It is anchored by two department stores and accommodates some 160 retailers and catering operators, providing a total annual rental income of £45 million.
Richard Akers, Managing Director for Land Securities Retail commented on the sale:
'The Bullring was instrumental in transforming the Birmingham retail offer and has performed well for us. However, the absence of operational control over the Bullring made it an unusual asset within Land Securities' portfolio where we look to create value through successful development and active management of properties. The funds generated by the sale will increase the Group's flexibility to exploit future opportunities.'
Cushman & Wakefield acted for Land Securities and CBRE represented Future Fund.
ENDS
For further information please contact -
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Press |
Analysts/Investors |
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Melissa Winsor |
Ed Thacker |
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Land Securities Group |
Land Securities Group |
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020 7024 5079 |
020 7024 5185 |
Editors notes
About Land Securities
Land Securities is the UK's leading Real Estate Investment Trust and has a large portfolio of commercial property in London and UK regional cities.
The portfolio comprises over 50 retail parks and shopping centres including the quadruple award winning Cabot Circus in Bristol and Princesshay in Exeter. It is also the leading provider of office accommodation in London owning properties such as the Piccadilly Lights, Westminster City Hall, Cardinal Place in Victoria and the newly created New Street Square complex in Midtown.
Through its development programme Land Securities is creating attractive and innovative new offices and retail destinations that transform their surroundings. On site now in London, 'One New Change' is revitalising the area surrounding St Paul's cathedral while in Cardiff the retail offer and amenities of the City are being dramatically enhanced with the St David's scheme.
Future Fund
The Future Fund was established in 2006 as a financial asset fund designed to accumulate financial assets and invest them on behalf of the Australian Government to address the Government's unfunded superannuation liabilities. The assets of the Future Fund were AUD 61.04 billion at 30 June 2009.
For more information visit www.futurefund.gov.au
Birmingham Alliance
In 2003 the Birmingham Alliance, a partnership between Land Securities Group PLC, Hammerson plc and Henderson Global Investors, completed the transformation of an 11-hectare site into the Bullring. It became a landmark scheme which was to set a new benchmark for city centre regeneration projects throughout Europe.
This information is provided by RNS
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