Joint venture partners London & Stamford Property Plc and Green Park Investments have sold their 50% interest in the freehold of Meadowhall Shopping Centre to Norges Bank Investment Management, the manager of the Norwegian Government Pension Fund Global.

Joint venture partners London & Stamford Property Plc and Green Park Investments have sold their 50% interest in the freehold of Meadowhall Shopping Centre to Norges Bank Investment Management, the manager of the Norwegian Government Pension Fund Global.

British Land, which owns the other 50% stake, and Norges have signed a new joint venture ownership agreement which brings together the UK's largest listed retail landlord and one of the world's largest sovereign wealth funds. British Land will continue to manage the shopping centre.

The purchase price values Meadowhall at £1.525 bn, reflecting a net initial yield of 5.09% and a £11.2 mln uplift in the valuation as at 31 March 2012.

The joint venture acquired its 50% interest in Meadowhall in February 2009. The purchase price valued Meadowhall, one of the UK's biggest and most successful shopping centres, at £1.175 bn and the valuation reflected a net initial yield of 6.75%. The joint venture's share of Meadowhall represented a £170 mln total cash investment of which £47 mln was deferred. As part of the sale, deferred payments from the original purchase have been settled and the final purchase price agreed at £152 mln. LSP's share of this investment in Meadowhall was £47.8 mln.

The net proceeds of sale generated a profit of £155.9 mln.

Raymond Mould, Chairman of London & Stamford, said: "The performance of the centre has been outstanding since our acquisition in February 2009. Despite difficult trading conditions, tenant performance has been generally good and in some cases exceptional. There is no doubt that there is strong demand globally for prime UK property and we believe that this sale is timely."

Chris Grigg, CEO of British Land, said: "Norges is an ideal strategic partner for British Land. Its investment is a measure of the outstanding quality of Meadowhall and we look forward to working with them to continue to develop its potential in the years to come."