Land Securities has acquired three retail outlet centres in the UK from London-based Hermes Investment Management for £332.5 mln (€387 mln).
Land Securities, the largest UK REIT, said the portfolio generates annualised net rental income of £21.6 mln.
The portfolio comprises Freeport Braintree in Essex (pictured), Clarks Village in Street, Somerset and J32 in Castleford, Yorkshire.
Land Securities said the transaction helped establish it 'as the leading owner-manager of outlets in the UK'.
As part of its strategy, other assets have been sold in recent months in order to recycle capital into 'family-focused retail and leisure destinations'. For instance, Land Securities completed the sale in February of The Printworks leisure centre in Manchester to DTZ Investors for £108 mln. Fund manager Orchard Street acquired The Cornerhouse leisure-led scheme in Nottingham from Land Securities for £65 mln in January this year.
'Our retail strategy is focused on the destinations that offer the most vibrant and engaging experiences for retailers and consumers alike. Following our disposal of The Printworks and The Cornerhouse, this acquisition adds three new destinations to our portfolio, where we see potential for growth,' said Scott Parsons, managing director retail at Land Securities.
Land Securities manages a £14.5 bn portfolio totalling 2.2 million m2 of London office buildings and retail assets around the UK.
