Legal & General has reasserted its commitment to the £500m regeneration of Bracknell town centre after a potential deal to sell its stake to Sovereign Land and Ares Capital Management failed to materialise.
The fund manager was in discussions to sell its 50% share in the 580,000 sq ft retail-led development in Berkshire for circa £50m. It was understood to be one of a number of options L&G examined for its share in the Bracknell Regeneration Partnership – a joint venture with Schroders.
Sovereign Land and Ares beat off competition in February from Lend Lease, Grosvenor and Orion Capital Management to be preferred bidder.
However, a sale was not agreed, and Legal & General has now committed to retain its share in the town centre regeneration.
Marks & Spencer is signed up for an 80,000 sq ft anchor shop, with Bentalls department store – owned by Fenwick – set to be the second. Primark and H&M are among the tenants that have agreed to open at the scheme and Cineworld has agreed a 12-screen, 41,500 sq ft cinema.
There is set to be a surge of activity in the UK shopping centre development market in 2017 as major schemes complete, according to a report by Cushman & Wakefield. An estimated 1.9m sq ft of space will be delivered in three years’ time, due largely to the delivery of Hammerson’s 1.3m sq ft Victoria Gate development in Leeds and Bracknell town centre. They are both expected to be delivered in 2017, the report added.
Cushman & Wakefield acted for L&G; Lunson Mitchenall advised Sovereign Land/Ares.
annabel.dixon@estatesgazette.com
