British Land has sold its 50% stake in Meadowhall shopping centre in Sheffield.
- The sale was made to Norges Bank Investment Management for £360 million.
- This decision aligns with British Land’s strategy to concentrate on retail parks.
- Proceeds from the sale after net debt are expected to be £156 million.
- British Land will continue as asset manager for Meadowhall, earning ongoing fees.
British Land announced the sale of its 50% ownership in the Sheffield-based Meadowhall shopping centre to Norges Bank Investment Management for £360 million. This transaction reflects British Land’s ongoing strategy to prioritise investments in retail parks and reduce its presence in traditional shopping centres.
The sale, which will be finalised in July 2024, follows a previous sale of ancillary land by the joint venture for £7 million earlier in the year, valuing the entire Meadowhall estate at £734 million. This valuation is 3% higher than its figure in September 2023.
Upon completion of the sale, British Land anticipates net proceeds of £156 million after accounting for net debt of approximately £200 million. These funds are earmarked for “general corporate purposes,” including reinvestment in retail parks.
Despite the divestment, British Land will maintain its role as asset manager of Meadowhall, thus continuing to earn fees based on current terms. Simon Carter, CEO of British Land, expressed satisfaction with the longstanding partnership with Norges and highlighted their focus on high-occupancy retail parks, offering attractive returns with low capital expenditure requirements.
Meadowhall, as the fifth largest shopping centre in the UK, draws around 24 million visitors each year, underscoring its significance even as British Land shifts its strategic focus. Following this transaction, 93% of British Land’s portfolio is concentrated in retail parks, campuses, and London urban logistics.
The sale of Meadowhall marks a strategic shift for British Land as it continues to focus on retail parks and logistics.
