Landsec, the London-listed Real Estate Investment Trust, has strengthened its position in the UK retail market by acquiring an additional 17.5% stake in Bluewater shopping centre. The £120 million purchase from GIC increases Landsec’s ownership of Bluewater to 66.25%.
The transaction is expected to boost Landsec’s net rental income by £10.3 million annually, based on the performance of its existing investment in Bluewater over the year to March 2024.
Landsec shares were 0.16% higher at the time of writing.
Bruce Findlay, Managing Director of Retail at Landsec, highlighted the significance of the deal: “This transaction demonstrates our ability to create value through prime investments in scarce, major retail destinations with attractive return profiles. Bluewater is a key part of our strategy to further build relationships with leading brands.”
Bluewater spans over 240 acres and housing more than 300 stores, restaurants, and entertainment venues. This mix of retail and experiences means the centre has managed the shift in consumer trends better than a typcial high street. Bluewater attracts over 27 million visitors annually.