Land Securities announced on Monday that it has sold its one third ownership of the Bullring shopping centre in Birmingham to the Future Fund, an investment fund for the Australian government, for £210 mln (about EUR 232 mln). The transaction volume reflects a net yield of 6.85% after settlement of outstanding rent reviews.
Land Securities announced on Monday that it has sold its one third ownership of the Bullring shopping centre in Birmingham to the Future Fund, an investment fund for the Australian government, for £210 mln (about EUR 232 mln). The transaction volume reflects a net yield of 6.85% after settlement of outstanding rent reviews.
The 110,000 m2 shopping centre opened in Birmingham's city centre in autumn 2003 and has been consistently ranked since then in the UK's top five retail destinations. It is anchored by two department stores and accommodates some 160 retailers and catering operators, providing a total annual rental income of £45 mln.
Richard Akers, managing director for Land Securities Retail, commented: '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. The fund has appointed Henderson Global Investors to manage its initial UK property investment. Henderson will provide fund management services to the Future Fund.
