Landsec offloads two retail parks in £54m deal

Landsec, one of the largest real estate companies in Europe, has announced the sale of two retail parks. 

The two disposals, Derwent Howe Retail Park, a 120,000 sq ft site located in Workington, Cumbria and Blackpool Retail Park, were sold for £54.3m.

It said this represents an average 15% premium to the March 2021 book value and an average yield to the purchasers of 7%. 

Landsec sold Derwent Howe Retail Park, Workington to Supermarket Income REIT, whilst the sale of Blackpool Retail Park was agreed with Columbia Threadneedle.

The sales represent the first divestments from its non-core retail park portfolio since the Group unveiled its new strategy for growth in October last year. 

Following the disposals, Landsec has seven retail parks remaining in its portfolio.

Phillip Davies, head of investment, Landsec, said: “In line with our strategy we have been increasing portfolio recycling as we look to make the most of Landsec’s strengths and invest in areas with greater growth possibilities. 

“Retail parks represent a subscale sector for us and a clear opportunity to realise capital that can be better deployed in areas where we have a competitive advantage such as central London and urban mixed-use regeneration projects.”