UK REIT Land Securities has agreed to acquire an additional 35.6% interest in the X-Leisure Unit Trust for £104 mln (€123 mln) in cash, taking its total ownership of the trust to 95%.
UK REIT Land Securities has agreed to acquire an additional 35.6% interest in the X-Leisure Unit Trust for £104 mln (€123 mln) in cash, taking its total ownership of the trust to 95%.
The deal follows Land Securities' decision in January this year to take a controlling stake in the trust, the UK's largest leisure property fund with assets valued at £590 mln as at August 2013.
The consideration of £104 mln represents a price per unit of 37.96 pence compared with the last published valuation as at August 2013 of 38.13 pence.
'Eighteen months ago Land Securities had no major standalone leisure assets. Today we are the UK's biggest leisure landlord with significant exposure to a sector which is seeing strong occupational demand,' said Land Securities' executive director Richard Akers.
Land Securities acquired its initial 12% holding in the Trust in 2012 and extended its ownership to 54% in January this year with the purchase of a 42% interest together with 100% interests in the Trust's management companies. A further 5.4% was acquired in March.
The trust was scheduled to expire in December 2014, but its life was extended in July 2013 for a further five years, triggering an option for unit holders to retire their holdings. The majority of unit holders including funds managed by LaSalle, Scottish Widows Investment Partners, and Royal London exercised that right.
The X-Leisure portfolio comprises 16 schemes, totalling 300,000 m2 of prime leisure and entertainment space, including X-scape in Milton Keynes and Brighton Marina.