LS exits Exeter and takes 100% stake in Buchanan

RNS Number : 9444T

Land Securities Group PLC

10 October 2014

 



10 October 2014

Land Securities Group PLC ("Land Securities")

Land Securities exits Princesshay, Exeter and takes full control of Buchanan Galleries, Glasgow

Land Securities has exchanged contracts to sell its 50% stake in Princesshay shopping centre and surrounding properties in Exeter totalling 589,000 sq ft, to TIAA Henderson Real Estate for £127.9 million, and simultaneously buy TIAA Henderson Real Estate's 50% stake in Buchanan Galleries, Glasgow for £137.5 million. This takes Land Securities' interest in Buchanan Galleries to 100%.

Land Securities' existing 50% interest in Buchanan Galleries currently produces a net rental income of £7.5 million, while Princesshay produces a net rental income of £7.6 million.

Buchanan Galleries currently totals 600,000 sq ft of prime retail space which is home to 90 of the best high street names. Retailers include Hollister, H&M, Mango, Lipsy, Thomas Sabo, Boux Avenue and John Lewis.

Land Securities has planning consent for a leisure and retail extension to Buchanan Galleries, which would extend the centre to 1.2 million sq ft of retail, leisure and restaurant space in the heart of Glasgow, anchored by M&S and John Lewis.

Princesshay in Exeter was developed by Land Securities in 2007 and, together with surrounding properties, is owned jointly with The Crown Estate. The award-winning scheme was designed to seamlessly integrate into the city centre. Its sensitive design with a diverse range of architectural styles respected not only existing street patterns, vistas and views, but also local heritage and its immediate proximity to Exeter Cathedral, while also strengthening pedestrian links within the city. The transaction excludes Land Securities' 50% interest in 1-11 Sidwell Street which is occupied by John Lewis.

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.

"Our planned retail development programme, of which the proposed extension to Buchanan Galleries forms part, will create the very best shopping environments in some of the UK's top retail destinations."

-Ends-

Notes to editors:

Land Securities is the UK's largest commercial property company and a member of the FTSE 100.  The company owns and manages more than 24 million sq ft of property, from shopping centres to offices, valued in excess of £11.8 billion.

For further information, please contact:

Land Securities Group PLC

Press                                                                          Investors                    

Duncan Bonfield/Molly Neal                                        Ed Thacker    

T: [phone]/5460                                     T: [phone]

[e-mail]                       [e-mail]  

[e-mail]

 

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