Land Securities share price: REIT sells Sunderland shopping centre

on Jun 24, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Tuesday, June 24: Land Securities (LON:LAND) has agreed to sell The Bridges shopping centre in Sunderland to clients of real estate investor AEW Europe for £152 million.

The UK’s largest real estate investment trust (REIT) announced the deal in a statement this morning. It revealed that, after buying The Bridges in 1993 and extending it in 2000, the sale price of the 550,000 sq ft site reflects a net initial yield of 6.9 percent.
Commenting on the agreed sale, Scott Parsons, managing director of Retail at Land Securities, said: “Our retail strategy is to move the portfolio towards dominance, experience and convenience.” He added that The Bridges – which is anchored by department store Debenhams, and has a further 100 shops including Foot Locker, Superdry and TopShop – trades well currently but is not part of the REIT’s strategic focus. “The strong market conditions for retail assets have allowed us to move quickly to crystallise value from the asset,” Parsons noted.

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In a separate strategic move, Land Securities is thought to be one of the bidders for Lend Lease’s £600 million stake in the Bluewater shopping centre. Rival REITs British Land (LON:BLND) and Hammerson (LON:HMSO) are also keen to secure a slice of the retail complex in Kent which has more than 300 shops and is considered one of Britain’s most popular shopping centres (British Land share price: Company eyes slice of Bluewater).

**Land Securities share price inches up**
Land Securities’ share price opened marginally higher today. As of 08:18 BST, the stock was changing hands at 1,013.58p – 0.06 percent up on the day.
Last month the REIT released its annual results for the year ended March 31, 2014 (Land Securities share price: REIT doubles annual profit), which revealed that profit before tax had risen 108 percent to £1.1 billion in the period, buoyed by a strong UK property market.
Of the 17 analysts projecting 12 month price targets for Land Securities for The Financial Times, the median target is 1,100p, with a high estimate of 1,280p and a low estimate of 770.00p.
**As of 08:10 BST, buy Land Securities shares at 1,014.00p.**

**As of 08:10 BST, sell Land Securities shares at 1,012.00p.**

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