The Royal London Mutual Insurance Society (Royal London), the UK’s largest mutual life, pensions and investment company has exchanged contracts to acquire Hermes' 7.5% holding in the €2.2 bn Bluewater shopping centre in Dartford, Kent.
The stake is worth an estimated £150 mln (€166 mln).
Michael Lawrence, head of Retail at Royal London Asset Management, said: 'This acquisition of Hermes Investment Management’s 7.5% stake in Bluewater shopping centre represents a strong new addition to our portfolio, as we continue to target high-quality assets in the retail space.'
'This sale leaves us well placed to focus on our strategy of re-deploying capital into the market, as well as identifying new acquisitions where we believe additional value can be added through asset management,' commented Chris Taylor, head of Private Markets at Hermes Investment Management.
Bluewater is one of Europe's largest out-of-town shopping centres. Totalling 1.7 million sq ft (158,000 m2), it attracts approximately 27 million visitors per year and houses 330 retail outlets, including 40 cafes and restaurants and a 13-screen cinema.
In 2014 Land Securities acquired a 30% stake in Bluewater for £656 mln, or an overall net initial yield after expiry of rent-free periods of 4.1%.
Along with the acquired stake, Royal London has gained a seat on the board of the shopping centre, alongside other stakeholders, including Aberdeen Asset Management, M&G Real Estate, Singapore sovereign wealth fund GIC and LandSec.
HP Four advised Hermes Investment Management on the sale. Coady Supple acted for Royal London.
