Legal & General has confirmed the sale of Midsummer Place shopping centre in Milton Keynes for £250.5m to Intu Properties, with an initial yield of 5.1%.
The 420,000 sq ft development contains 50 units, with tenants including Hollister, Superdry, Zara, Apple, GAP, Coast, Karen Millen and Hobbs.
Intu Properties, formerly known as Capital Shopping Centres, raised capital towards the acquisition through a placing of 86m shares priced at 50p each.
Michael Barrie, director of fund management at Legal & General Property, said: “Midsummer Place today represents one of the UK’s best-performing regional malls and this has been further evidenced by the strong interest it received when we brought it to market at the end of last year. We acquired the asset in 2003 and over the course of our ownership have implemented a number of important asset management strategies, in order to consistently improve the high quality fashion-led retailer line up and bolster footfall year on year, driving it to perform significantly ahead of its benchmark.
“Our exit allows us to recycle capital into other market opportunities and to capitalise on LGP’s strong asset management and development capabilities.”
Intu Properties has assets of £7.1bn under management as of a company statement for the 2012 financial year issued this morning.
sophia.furber@estatesgazette.com
