Land Securities is tipped as the frontrunner to buy a prized stake in Bluewater shopping centre in Kent.
The UK REIT is understood to be edging ahead of rival bidders Hammerson and a joint venture between British Land and Norges in the race to acquire a highly sought-after 30% stake in the 1.8m sq ft mall from Australian group Lend Lease. Sources suggest it could be paying around £650m.
The share is being offered with a management contract.
Land Securities has been on a mission to reshape its retail portfolio in favour of prime shopping centres in recent years.
Its annual results published in May highlighted the continued “transformation of the portfolio to dominance, experience and convenience”, as a key objective for 2014/15.
In a statement accompanying the results, chief executive Rob Noel said: “Our strategy is to ensure we have the right properties in the right locations and to anticipate and accommodate retail trends. Unless we see buying opportunities that satisfy these requirements, our focus will remain on developing retail assets which fit this strategy and selling assets that do not.
“Over the last few years we have talked about how the retail market is changing and we have reshaped our portfolio as a result. The portfolio today is much more concentrated on dominance, experience and convenience.”
Lend Lease’s stake has attracted wide interest from investors including Unibail Rodamco, Westfield, M&G Real Estate, Intu Properties, Hines, Gingko Tree and Australian Super.
Bluewater opened in 1999 and there are currently plans to extend the shopping centre by a further 330,000 sq ft.
Morgan Stanley was appointed earlier this year to sell the Lend Lease stake following the conclusion of a court case with M&G Real Estate.
Cushman & Wakefield is advising Land Securities; CBRE is acting for British Land with Norges; and DTZ is representing Hammerson.
annabel.dixon@estatesgazette.com
