Land Securities Group PLC and Delancey announce today the creation of the Metro Shopping Fund Limited (“the Partnership”), a joint venture that will initially comprise central London shopping centres and shops from both companies.
Initially, the 50/50 Limited Partnership will own over 420,000 sq ft (39,000 m2) of retail space, valued at approximately £270m. The properties include Delancey’s Shopstop @ Clapham Junction, N1 Islington and Victoria Place, SW1 and Land Securities’ holdings in Notting Hill Gate W11.
The assets currently produce gross rents of circa £17m per annum from over 200 tenancies. Land Securities and Delancey have created Metro Shopping Fund Management Limited, a joint venture company with dedicated management to provide asset, corporate and property management services to the initial four properties.
The Partnership, which will be geared, will enable the partners to maximise the long-term value of the properties, attract and service high quality tenants and, in due course assess their development potential. It will also seek to acquire further retail assets and the addition of third party investors in the future.
Mark Collins, Chief Executive of Portfolio Management, Land Securities commented, ”Land Securities enjoys many successful partnerships. By joining forces with Delancey, we will be able to maximise the long-term value of the assets, leveraging economies of scale and enhancing value creation opportunities. The Partnership will also enable us to acquire further retail assets in this competitive market.”
Jamie Ritblat, Chief Executive of Delancey, said, “ We look forward to working in partnership with Land Securities to build up a substantial central London retail portfolio. Delancey has established a strong reputation for its innovative approach to asset management and a long track record of successful joint ventures. We are delighted to be able to bring these strengths together with Land Securities, who share our vision for a major central London retail fund providing benefits to tenants and investors alike.”
Land Securities was advised by Slaughter & May and Knight Frank. Delancey was advised by Olswang, Jones Lang LaSalle and DTZ. The Partnership will be advised on an ongoing basis by Jones Day with Knight Frank acting as valuers.
Source: Land Securities