Norges Bank Investment Management has exchanged contracts with British Land for an extra 50% stake in Meadowhall Shopping Centre for £360 million.
Norges Bank Investment Management already owns 50% interest in Meadowhall, Sheffield, so will now own 100%.
The sale is in line with British Land’s strategy to focus on retail parks and also reduce exposure to covered shopping centres.
The deal with its partner Norges Bank Investment Management follows the sale of ancillary land by the Joint Venture for £7 million (British Land share) earlier this year.
Together these deals value the entirety of the Meadowhall Estate at £734 million, 3% above September 2023 book value.
Proceeds after net debt of around £200 million are expected to total around £156 million.
As part of the transaction, British Land will remain as asset manager of Meadowhall shopping centre. It will continue to earn fees in line with current terms.
The transaction is expected to complete in July 2024. The proceeds will be used for general corporate purposes including reinvestment into retail parks.
Norges Bank Investment Management’s Chief Investment Officer Real Assets Mie Holstad, says, “We are very pleased to extend our ownership in Meadowhall, a dominant super regional shopping centre with strong occupier fundamentals.”
Simon Carter, Chief Executive of British Land, says, “We have had a successful partnership with Norges over many years and are delighted to continue to work alongside them as asset managers of the centre.
“Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and London urban logistics.
“We will continue to grow our retail park portfolio; with low capex requirements parks offer attractive cash returns and at 99% occupancy we are delivering strong rental growth.”
