British Land is eyeing the £750m sale of the Meadowhall shopping centre in Sheffield.
A deal for Meadowhall, 50:50 owned by British Land and Norway’s sovereign wealth fund Norges, would be one of the largest shopping centre deals of the past decade.
CBRE has been appointed to handle the sale, which will kick off in the coming weeks, with the £750m asking price equating to a yield of between 7 and 8%.
Meadowhall was sold to British Land for £1.2bn by Yorkshire-based developers Eddie Healey and Paul Sykes, who created it nine years earlier on the site of a former steelworks.
The current asking price suggests Meadowhall’s value has roughly halved since 2012, when Norges bought its 50% stake in a deal that valued the shopping centre at £1.53bn.
A buyer for Meadowhall would inherit £450m of debt secured against the centre, while the cost of servicing the debt has meant Meadowhall’s owners have not received any income from the centre for three years.
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