Landsec has sold two retail parks for £54.3m, as it begins to shed “subscale” assets.
Derwent Howe Retail Park, a 120,000 sq ft site located in Workington, Cumbria, was sold to Supermarket Income REIT, while Columbia Threadneedle bought Blackpool Retail Park.
The price represents an average 15% premium to the March 2021 book value and an average yield to the purchasers of 7%.
The sales are the first from its non-core retail park portfolio since Landsec unveiled its new strategy in October last year. Landsec said it wanted to “realise capital in subscale sectors where it has little or no competitive advantage”. Landsec has seven retail parks remaining in its portfolio.
Head of investment Phillip Davies said: “In line with our strategy we have been increasing portolfio recycling as we look to make the most of Landsec’s strengths and invest in areas with greater growth possibilities.
“Retail parks represent a subscale sector for us and a clear opportunity to realise capital that can be better deployed in areas where we have a competitive advantage, such as central London and urban mixed-use regeneration projects.”
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