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Landsec has announced that it has completed the acquisition of an additional 25% share in Bluewater from Lendlease Retail Partnership for £172m.
The deal represents a net initial yield of 8.15% and an equivalent yield of 8.25%.
In a separate deal, Landsec will sell 25% of this share to co-owner M&G for its pro rata share of the purchase price with the deal completing in April 2022, at which point Landsec’s ownership of Bluewater will be 48.75%.
With an annual turnover in excess of £1b and a catchment population of 3.9 million people, Bluewater is home to “strong brands” including Apple, Amazon 4 Star, John Lewis, Marks and Spencer, Primark, and Zara.
Bruce Findlay, MD Retail at Landsec, said: “We’re making this acquisition at a time when retail values and rents are starting to stabilise. Together with our co-owners, we have a clear vision for Bluewater which builds on what is already a thriving retail destination.
“This investment underlines our strategic commitment to major retail destinations that offer something that can’t easily be replicated online.”
The acquisition follows the recent announcement that Landsec has created a new brand account management team alongside a new operating model for its retail business, as the group accelerates its ‘reimagine retail’ strategic pillar.
