Land Securities today announces that it has sold its one third ownership of the Bullring, Birmingham to the Future Fund, an investment fund for the Australian Government, for £210 million, reflecting a net yield of 6.85% after settlement of outstanding rent reviews.
The 1.2 million-ft² (110,000-m²) shopping center opened in Birmingham's city center in autumn 2003 to global acclaim and has been consistently ranked in the UK's Top Five retail destinations since its completion. It is anchored by two department stores and accommodates some 160 retailers and catering operators, providing a total annual rental income of £45 million.
Richard Akers, Managing Director for Land Securities Retail commented on the sale: "The Bullring was instrumental in transforming the Birmingham retail offer and has performed well for us. However, the absence of operational control over the Bullring made it an unusual asset within Land Securities' portfolio where we look to create value through successful development and active management of properties. The funds generated by the sale will increase the Group's flexibility to exploit future opportunities."
Cushman & Wakefield acted for Land Securities and CBRE represented Future Fund.
Source: Land Securities