British Land is in discussions to buy the half of Asda Property that it does not already own in a deal worth £200m-£400m.
British Land and Asda owner Manny Davidson joined forces in September 2001, when Britain’s second largest property company took a 50% stake in the London-based firm, and then took the group private in a £230m buyout.
However, the takeover has yet to complete. Sources close to both companies were unable to say when it would be signed.
Davidson, now 75, has been seeking to sell his family’s share in the company for some time.
“British Land will have always have had an option to buy Davidson out at a certain price,” said one source.
“It’s an acquisition that was always on the cards,” added another. “It finishes off what was started when British Land and Davidson joined forces.”
However, a former employee of Asda said he “did not know of any clause” being written into the joint venture agreement, and suggested the sale was more likely to be led by the buoyancy of the market and by founder Manny Davidson’s age.
“Manny is in his mid-70s now and he’s always been a shrewd property player. It’s no surprise that he’s decided to sell at the top of the market,” the source said.
Davidson, who was ranked 83rd with a £110m fortune in last year’s EG rich list, set up Asda Property Holdings in the early 1970s and launched it on the London stock market in April 1985.
The London-based company holds a portfolio of around 80 properties, focused largely on retail warehousing and the central London markets.
Developments include the 238,000 sq ft Forster Square retail park in Bradford, the 227,000 sq ft Wheatley Centre in Doncaster and the 176,500 sq ft Kingswood retail park in Kingston-upon-Hull.
The portfolio is valued at between £500m and £600m, with a net asset value of about £165m and an annualised net rent of £29m.
British Land’s investment in the venture was valued at £103m at 31 March 2004.
