British Land exchanges €1 bln of joint venture properties with Tesco (UK)

British Land announces it has completed a £733 mln (approx. €1.012 bln) property exchange transaction with Tesco.  Under the terms of the transaction, British Land has sold its 50% interest in a joint venture portfolio of 21 stand-alone food stores to Tesco and acquired Tesco’s 50% interest in two joint venture portfolios predominately comprising Tesco-anchored shopping centers and retail parks.
The transaction is in line with our strategy to evolve our retail portfolio. It further reduces our food store weighting and increases our exposure to multi-let retail parks and shopping centers. Our full ownership of these assets will provide significant potential to add further value through asset management and development.
Charles Maudsley, Head of Retail & Leisure, British Land, said: “This mutually beneficial transaction clearly demonstrates the great relationship we enjoy with Tesco. It plays to our strengths of managing multi-let assets and gives Tesco more control of their stand-alone portfolio. We see significant opportunity to add value and drive returns through asset management and development.”
Source: British Land