Land Securities has exchanged contracts to sell its 50% stake in Princesshay shopping centre in Exeter to TIAA Henderson Real Estate for £127.9 mln (€162 mln), and to buy TIAA Henderson Real Estate's 50% stake in Buchanan Galleries, Glasgow for £137.5 mln.

Land Securities has exchanged contracts to sell its 50% stake in Princesshay shopping centre in Exeter to TIAA Henderson Real Estate for £127.9 mln (€162 mln), and to buy TIAA Henderson Real Estate's 50% stake in Buchanan Galleries, Glasgow for £137.5 mln.

This takes Land Securities' interest in Buchanan Galleries to 100%.

Land Securities' existing 50% interest in Buchanan Galleries currently produces a net rental income of £7.5 mln, while Princesshay produces a net rental income of £7.6 mln.

Buchanan Galleries currently totals 600,000 sq ft (55,800 m2) of prime retail space which is home to 90 retailers including Hollister, H&M, Mango, Lipsy, Thomas Sabo, Boux Avenue and John Lewis.

Land Securities has planning consent for a leisure and retail extension to Buchanan Galleries, which would expand the centre to 1.2 million sq ft of retail, leisure and restaurant space in the heart of Glasgow, anchored by M&S and John Lewis.

The award-winning 589,000 sq ft Princesshay was developed by Land Securities in 2007 and, together with surrounding properties, is owned jointly with The Crown Estate.

'These two transactions give us the opportunity to take full control in Glasgow ahead of the planned extension, while also exiting Princesshay in Exeter in line with our strategy of reshaping our retail portfolio to focus on the key themes of dominance, experience and convenience,' said Scott Parsons, managing director, Retail at Land Securities.