UK listed shopping centre specialist Intu Properties confirmed on Thursday that it is in advanced discussions with Australia's Qeensland Investment Corporation regarding the acquisition of the 50% stake it does not already own in Intu Merry Hill in Dudley, West Midlands, UK.
If the acquisition were to proceed, the consideration is likely to be around £410 mln (€518 mln) and would be funded through a combination of new debt and existing resources, the company said in a statement.
While discussions are ongoing, there can be no certainty that any transaction will be undertaken, it added.
QIC, which manages investment for the Queensland state government, acquired its half stake in Merry Hill for about €760 mln from Westfield Group in 2006. The Brisbane-based investment manager is believed to have started marketing the asset last year with an asking price of £500 mln.
Intu bought its 50% stake from Westfield last year as part of a £867.8 mln deal, which also included the purchase of Westfield Derby and Spucefield retail park in Northern Ireland.
Merry Hill was developed in the late 1980s and has an annual footfall of 22 million. It is home to 264 units over 1.4 million sq ft.
