Land Securities is considering a potential sale of its stake in Bristol shopping centre Cabot Circus, as momentum in the retail investment market builds.
The REIT is understood to be mulling options for its share in the 1.2m sq ft scheme and is entertaining off-market interest from investors. The price tag is thought to be around £270m – a 5.7% yield.
GIC, CPPIB and Deka have been mooted as potential buyers. Land Securities manages the shopping mall, which is jointly owned with retail REIT Hammerson.
The Harvey Nichols and House of Fraser-anchored Cabot Circus opened in 2008 and comprises around 150 shops. It also includes 250 homes, a 13-screen cinema, two public squares, three pedestrianised shopping streets and 2,600 parking spaces.
The REIT declined to comment, but in its annual results for the year ended 31 March 2013, said: “We will continue to identify properties for sale in order to recycle capital into new opportunities.”
The move comes ahead of an anticipated flurry of retail investment activity. In Windsor, Berkshire, London & Associated Properties has brought its to the market King Edward Court shopping centre to the market.
London & Associated Properties is selling the 215,000 sq ft mall for £102.5m – a 5.75% yield.
One source said: “There is more liquidity in the market, which is allowing people to sell. There is a lot of trading going on. The investor requirement is as strong as it has ever been.
“A lot of investors want good quality assets and they rarely come up. Cabot Circus is a prime scheme in one of the UK’s top 15 towns.”
Lewis & Partners and GCW is advising London & Associated Properties.
