M&G has exchanged contracts on a circa £94m forward funding agreement for Selly Oak Shopping Park in Birmingham, jointly owned by Landsec and Sainsbury’s.
The sale represented a yield of around 5%. The regeneration scheme, a former Battery Park site, operates under a Landsec and Sainsbury’s jv, the Harvest Partnership.
The final value of the deal is subject to change, since the scheme has yet to reach full occupancy. CBRE advised M&G, while JLL acted for the Harvest Partnership.
M&G has bought the site together with the buildings under construction, with a further development fee due on practical completion. Construction is expected to complete in September.
The mixed-use scheme will be anchored by a new Sainsbury’s supermarket spanning 115,000 sq ft, due to open in November.
The site is near Birmingham University campus and the Queen Elizabeth Hospital. Tenants will include Next, M&S Simply Food, JD Sports, Nando’s, Wilko, Costa and Superdrug.
The sale comes after nearby Battery Retail Park was sold by previous owner Hammerson to NFU Mutual in February, in a £57.5m deal. Its tenants included Next – which will likely relocate to Selly Oak – as well as TK Maxx, Homebase, Sports Direct and Halfords.
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