British Land has completed an £80m property swap with Scottish Widows Investment Partnership.
The REIT has bought the 153,000 sq ft Mayflower retail park in Basildon, Essex, from SWIP for £51m – a 6.3% initial yield. The park is let to tenants including Homebase, Currys, Harveys, Mothercare and Next. BL already owns the Eastgate shopping centre in Basildon.
As part of the transaction, BL has agreed to sell its Valley leisure park in Croydon, south London, to SWIP for £28m, reflecting a yield of 7.1%. The 135,000 sq ft park is anchored by an eight-screen Vue cinema.
The swap requires a cash investment of £23m from BL.
Charles Maudsley, head of retail at BL, said that the deal was in line with its strategy of recycling capital into assets with higher rental and value growth prospects. He added: “By refreshing and modernising Mayflower, there are significant opportunities to attract new retailers and to grow rents.”
Harvey Spack Field advised BL; Edgerley Simpson Howe acted for SWIP.
