British Land has sold its stake in Meadowhall shopping centre for £360 million, ending its 25-year ownership.
Norges Bank Investment Management is set to take full ownership of the shopping center, the largest in Yorkshire. It previously held a 50% stake, having initially invested in 2012.
The agreement values Meadowhall at £734 million, significantly lower than the £1.07 billion that British Land, listed on the FTSE 250, paid in 1999 to acquire the center from its initial developers, Eddie Healey and Paul Sykes. It also falls short of the £1.4 billion valuation at the time of Norges Bank’s purchase of a 50% stake in 2012.
The transaction is set to complete in July, with British Land continuing as the asset manager for the shopping centre.
Simon Carter, British Land’s chief executive, stated: “We have had a successful partnership with Norges over many years and are delighted to continue to work alongside them as asset managers of the centre.” Post-sale, 93% of British Land’s portfolio is concentrated in retail parks, campuses, and London urban logistics.
