TIAA Henderson Real Estate (TH Real Estate), on behalf of its UK Shopping Centre Fund, and Land Securities Group PLC (Land Securities), have exchanged contracts to sell their respective interests in Buchanan Galleries, Glasgow, and Princesshay Shopping Centre in Exeter, to each other.
TH Real Estate’s purchase of Land Securities 50% stake in Princesshay Shopping Centre sees the business enter into a new strategic partnership with The Crown Estate, which already owns 50% of the asset. The Crown Estate will take responsibility for the asset management of Princesshay on behalf of the partnership.
Princesshay, in Exeter, was developed by Land Securities in 2007. The approx.52.000 m² scheme was designed to seamlessly integrate into the city center. Its sensitive design, with a diverse range of architectural styles, respects not only existing street patterns, vistas and views, but also local heritage and the immediate proximity to Exeter Cathedral, while also strengthening pedestrian links within the city.
Stephen Wicks, Director of Shopping Centers at TH Real Estate & Fund Manager of the UK Shopping Centre Fund, said “This transaction represents an innovative play for both companies, enabling each party to pursue its respective investment strategy. The swap out of Glasgow and into Exeter represents a desire to rebalance the Fund’s portfolio; it better aligns the regional balance of the Fund in addition to the development activity across the Fund portfolio. It also allows us to channel our development commitment to Edinburgh St James; the approx.158.000 m² city center scheme is one of the biggest regeneration projects currently underway in the UK, and, once completed, will comprise approx.93.000 m² of prime retail space.”
Paul Clark, Director of Investment and Asset Management at The Crown Estate added: “This partnership is yet another example of the trust investors have in our skills and expertise, both in the regional retail sector and in managing funds within joint ventures. We’re looking forward to working with TH Real Estate to explore opportunities to further enhance performance at Princesshay, developing the shopping experience for visitors and ensuring the Centre continues to deliver a range of benefits locally.”
Source: TIAA Henderson