Norges acquires British Land’s 50% Meadowhall stake
The investment arm of Norges, the central bank of Norway, has acquired British Land’s 50% stake in the Meadowhall shopping centre in Sheffield for £360m.
The deal means Norges Bank Investment Management controls 100% of the scheme, and follows the sale of some ancillary land by its joint venture with British Land for £7m earlier this year.
Combined, the two transaction value Meadowhall at £734m, 3% above September 2023’s book value.
British Land said the sale is in line with its strategy to focus on retail parks and reduce its exposure to covered shopping centres, and that the proceeds will be used for general corporate purposes including reinvestment into retail parks.
Under the terms of the transaction, British Land will remain as asset manager of Meadowhall.
Simon Carter, chief executive of British Land, said: “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.
Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and London urban logistics.
We will continue to grow our retail park portfolio; with low capex requirements parks offer attractive cash returns and at 99% occupancy we are delivering strong rental growth.”
Earlier this year, it emerged that Mike Ashley’s Frasers Group emerged as a frontrunner amongst a number of parties to purchase the scheme.