British Land Buys London Mall in $290 Million Property DealRoss Larsen
British Land Co., the U.K.’s second-largest real estate investment trust, bought London properties including the Ealing Broadway Shopping Centre from Wereldhave NV for 183.8 million pounds ($290 million.)
The shopping mall alone cost 142.5 million pounds in an all-share transaction, British Land, based in the U.K. capital, said today in a statement. The portfolio also includes retail and office space in central and west London.
Chief Executive Officer Chris Grigg has focused on boosting occupancy at the company’s retail properties and attracting enough tenants to planned developments to justify starting construction work. Wereldhave, based in the Netherlands, last month sold all of its U.S. holdings to Lone Star Funds for about $720 million as it focuses on western European shopping assets. The company today reported a full-year net loss that exceeded analyst estimates.
The Ealing Broadway center has 300,000 square feet of retail and leisure space and the purchase represents a net initial yield of 6.9 percent, according to the statement.
“There are significant opportunities to grow and develop the shopping center as a retail destination as we further improve the retail mix and increase the leisure,” Charles Maudsley, head of retail for British Land, said in the statement.