British Land is set to take full control of Surrey Quays shopping centre in Canada Water, SE16, by buying out its joint venture partner Tesco.
The UK REIT is understood to be paying circa £50m for the supermarket chain’s 50% stake in the 344,00 sq ft mall.
Surrey Quays shopping centre is anchored by Tesco and is also let to retailers including River Island, New Look, JD, Boots, Burton, Dorothy Perkins and WHSmith.
The pair won consent for a £31m, 110,000 sq ft extension to the mall last May. It will feature 18 shops and restaurants and outdoor dining. Extensive refurbishment of the mall is also planned.
It is anticipated that work will start on site in spring 2013 with completion scheduled for summer 2014.
British Land bought into the mall in 2009 when it acquired SEGRO’s 50% stake for £27m.
The deal will bolster British Land’s holdings in the area. The firm is thought to have completed on the purchase of the 14.5-acre printworks site at Harmsworth Quays, also at Canada Water, from Daily Mail General Trust for £12m-£14m. The land is estimated to be worth up to £50m.
It comes after Southwark council, which owns the freehold of the majority of the site, agreed earlier this month to allow the transfer of the lease to British Land.
A dispute developed last year after the council attempted to block the conditional sale. All parties declined to comment.
annabel.dixon@estatesgazette.com
