Land Securities, the leading UK real estate investment trust (REIT), has sold a 50% stake in its holdings at the corner of Oxford Street and Tottenham Court Road in London to private equity property fund Frogmore Real Estate Partners for £109 mln (EUR 145 mln). The parties also entered into a joint venture agreement under which Frogmore will be responsible for the asset management of the property, while Land Securities will concentrate on its redevelopment potential.

Land Securities, the leading UK real estate investment trust (REIT), has sold a 50% stake in its holdings at the corner of Oxford Street and Tottenham Court Road in London to private equity property fund Frogmore Real Estate Partners for £109 mln (EUR 145 mln). The parties also entered into a joint venture agreement under which Frogmore will be responsible for the asset management of the property, while Land Securities will concentrate on its redevelopment potential.

The holdings comprise retail units from 2/4, 12/42 and 46/50 Oxford Street and 5/17 Tottenham Court Road. Land Securities noted the units were built up over a number of years by individual purchases and now comprise 7,840 m2 of retail space and 13,470 m2 of office and ancillary accommodation. The block involved includes a Virgin Megastore and generates a current rental income of about £9 mln per annum.

Frogmore Real Estate Partners is sponsored by Frogmore Property Company and raised £330 mln in two closings last year. With a planned leverage of 65%, the fund has a total buying capacity of about £1 bn, of which approximately £600 mln has been committed to date.

Land Securities has £15 bn in assets, making it one of the largest property companies in both the UK and Europe. However, it confirmed in November that it intends to split into three separate listed units - covering retail, London and outsourcing.