British Land announces Joint Venture exchange with Tesco

Posted on 20 March, 2015 by Chris Grigorovsky

British Land has announced that it is has completed a £733 million exchange of its joint venture properties with Tesco.


Under the terms of the deal British Land has sold its 50 per cent interest in the joint venture portfolio, which comprises 21 foodstores, to Tesco and in return has acquired Tesco’s 50 per cent interest in two joint venture portfolios largely consisting of Tesco-anchored shopping centres and retail parks.

The transaction is in line with British Land’s overall strategy to evolve its retail portfolio and reduce its exposure to foodstores while, in turn, increasing its exposure to multi-let shopping centres and retail parks.

Head of Retail and Leisure at British Land, Charles Maudsley (pictured), said: “This mutually beneficial transaction clearly demonstrates the great relationship we enjoy with Tesco.

“It plays to our strengths of managing multi-let assets and gives Tesco more control of their stand-alone portfolio.

“We see significant opportunity to add value and drive returns through asset management and development”.

Overall, the transaction gives British Land full ownership of 730,000 sq ft of shopping centres and 660,000 sq of retail parks.

The shopping centres are the 320,000 sq ft Serpentine Green in Peterborough, Leicester’s 310,000 sq ft Beaumont Leys and the 100,000 sq ft Lisnagelvin centre in Londonderry.

The retail parks are the 270,000 sq ft Kingston Centre in Milton Keynes, York’s 240,000 sq ft Clifton Moor and Bury’s 150,000 sq ft Woodfields Retail Park.

Financially, British Land will gain a £2 million increase in net rental income and an £8 million reduction in net interest.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions