Land Securities has confirmed that it has exchanged contracts for the sale of its 50% stake in the Princesshay Shopping Centre in Exeter to TIAA Henderson Real Estate for £127.9m, as revealed by Estates Gazette.
The shopping centre and surrounding properties owned by Land Securities total 589,000 sq ft. Princesshay was developed by Land Securities in 2007 and is owned jointly with The Crown Estate.
Simultaneously, Land Securities will buy TH Real Estate 50% stake in Buchanan Galleries, Glasgow, for £137.5m, taking its share in the property to 100%.
Buchanan Galleries includes 600,000 sq ft of prime retail space and counts Hollister, H&M, Mango, Lipsy, John Lewis and Boux Avenue among its tenants. The centre has planning consent for an extension which would see it double in size to 1.2m sq ft.
Land Securities’ existing 50% stake in Buchanan Galleries currently produces a net rental income of £7.5m, while Princesshay generates a net rental income of £7.6m.
Scott Parsons, managing director, retail at Land Securities, said, “These two transactions give us the opportunity to take full control in Glasgow ahead of the planned extension, while also exiting Princesshay in Exeter in line with our strategy of reshaping the retail portfolio to focus on the key themes of dominance, experience and convenience.
