British Land has completed a £733m property deal with supermarket Tesco.
The deal is a swap that will see the supermarket own the freehold of more of its stores, as well as receive a cash payment of £96m, as it continues to revive its balance sheet.
British Land has sold Tesco its 50% stake in a portfolio of standalone food stores valued at £352m. It has also acquired Tesco’s 50% interest in two joint venture portfolios valued at £381m, predominately comprising Tesco-anchored shopping centres and retail parks.
The key assets in the transaction include the following:
Shopping centres:
• Serpentine Green, Peterborough, Cambridgeshire. A 320,000 sq ft shopping centre anchored by 140,000 sq ft Tesco.
• Beaumont Leys, Leicester. A 310,000 sq ft shopping centre anchored by a 150,000 sq ft Tesco.
• Lisnagelvin, Londonderry, Northern Ireland. A 100,000 sq ft scheme anchored by a 60,000 sq ft Tesco.
Retail parks:
• Kingston Centre, Milton Keynes, Buckinghamshire. A 270,000 sq ft open A1 retail park anchored by a 140,000 sq ft Tesco.
• Clifton Moor, York. A 240,000 sq ft mix of open A1 and bulky planning consents anchored by a 120,000 sq ft Tesco.
• Woodfields Retail Park, Bury, Greater Manchester. A 150,000 sq ft retail park anchored by an 85,000 sq ft Tesco
Standalone foodstores (on open market rent reviews):
• Bursledon, Southampton, Hampshire. A 120,000 sq ft store.
• Grove Green, Maidstone, Kent. A 60,000 sq ft store.
• Bromley by Bow, London. A 70,000 sq ft store.
Charles Maudsley, head of retail at British Land, said: “This mutually beneficial transaction clearly demonstrates the great relationship we enjoy with Tesco. It plays to our strengths of managing multi-let assets and gives Tesco more control of its standalone portfolio. We see significant opportunity to add value and drive returns through asset management and development.”
