Landsec sets sights on London as it sells two retail spaces
By Jenny McCall
10:18, 24 September 2021
UK-based real estate company Land Securities (Landsec) has announced the sale of two of its large retail parks – Derwent Howe Retail Park, a 120,000 sq ft site located in Workington, Cumbria, and Blackpool Retail Park in Blackpool. The retail parks were sold for £54.3m ($74.2m).
Making its announcement on Friday, the group said this was the first divestment from its “non-core” retail park portfolio since it unveiled its strategy for growth last October.
The real estate company, which is focused on investing in buildings, spaces and partnerships to create sustainable places to connect communities, said its new strategy for growth is focused on creating value for shareholders. The disposal of both sites will enable Landsec to reinvest in new opportunities, specifically in London.
“Landsec sold Derwent Howe Retail Park, Workington to Supermarket Income REIT [real estate investment trust], while the sale of Blackpool Retail Park was agreed with Columbia Threadneedle,” the statement said.
Phillip Davies, head of investment at Landsec, commented: “In line with our strategy, we have been increasing portfolio recycling as we look to make the most of Landsec’s strengths and invest in areas with greater growth possibilities.
“Retail parks represent a subscale sector for us and a clear opportunity to realise capital that can be better deployed in areas where we have a competitive advantage, such as central London and urban mixed-use regeneration projects.”
Landsec’s stock price was down 0.37% in mid-morning trading today.
Read more: Bluewater and O2 owner Landsec reports £1.4bn full-year loss