Sainsburys and British Land sell 12 superstores to US firm for £492m

Sainsburys and British Land sell 12 superstores to US firm for £492m

July 24, 2019 azwnolxx 0

first_imgCommercial property Tue 23 Apr 2019 09.58 EDT British Land and Sainsbury’s have sold 12 superstores to a US investment firm for £492m.Photograph: Florence Selwood/The Guardian About half of the company’s assets are in the retail sector, but the “smaller, refocused retail business” will comprise between 30% and 35% of its business in the future. British Land will only own six standalone superstores.Other companies have been caught in the retail storm. UK shopping centre landlord Intu was the target of two bids which fell through last year because of broader economic uncertainty.Hammerson, one of the bidders for Intu, in February said it was in talks to offload more than £900m of assets because of the pressure on retailers. Since you’re here… Share on Facebook Share via Email This article is more than 2 months old Share on Facebook Share on Messenger Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk Sainsbury’s and British Land have sold 12 superstores to a US property investment company for £492m, amid a struggling retail property market.The sale to San Diego-based Realty Income Corporation will give Sainsbury’s net proceeds of £133m. British Land’s share of the sale will be £193.5m, although net proceeds will only be £95m after debt and contract break costs, it said in a statement to the stock market on Tuesday.Sainsbury’s said it would continue to operate the stores, which will be leased back from the US investor.The British retail property sector is under severe pressure, faced with economic uncertainty as well as the increase in online shopping by consumers, to the detriment of bricks-and-mortar retailers.Total returns for investors in retail property underperformed the broader sector by around seven percentage points last year, according to the consultancy Capital Economics.Adrian Benedict, a property investment director at Fidelity International, has predicted the value of UK shopping centres, retail parks and high street stores could fall by between 20% and 70% in the coming years owing to a glut of space.British Land said there were “clear challenges currently in the retail market”, but that it would be “opportunistic and proactive” on future deals. The company has sold nearly £1bn of retail assets since April 2018, earning it £646m, including the struggling Debenhams’ store in Clapham, south London, and the Spirit pubs portfolio.British Land said it was part of its strategy to “build an increasingly mixed-use business” with a greater emphasis on London office developments and residential rentals. Deal comes amid continued economic uncertainty and a sharp rise in online sales Retail industry … we have a small favour to ask. The Guardian will engage with the most critical issues of our time – from the escalating climate catastrophe to widespread inequality to the influence of big tech on our lives. At a time when factual information is a necessity, we believe that each of us, around the world, deserves access to accurate reporting with integrity at its heart.More people are reading and supporting The Guardian’s independent, investigative journalism than ever before. And unlike many news organisations, we have chosen an approach that allows us to keep our journalism accessible to all, regardless of where they live or what they can afford. But we need your ongoing support to keep working as we do.Our editorial independence means we set our own agenda and voice our own opinions. Guardian journalism is free from commercial and political bias and not influenced by billionaire owners or shareholders. This means we can give a voice to those less heard, explore where others turn away, and rigorously challenge those in power.We need your support to keep delivering quality journalism, to maintain our openness and to protect our precious independence. Every reader contribution, big or small, is so valuable. Support The Guardian from as little as $1 – and it only takes a minute. Thank you. Shares9898 news Real estate J Sainsbury Support The Guardian Share on Pinterest Share on WhatsApp Reuse this content Share on LinkedIn Share via Email Supermarkets Jasper Jolly Topics This article is more than 2 months old British Land Share on Twitter J Sainsbury First published on Tue 23 Apr 2019 09.45 EDT Share on Twitter Sainsbury’s and British Land sell 12 superstores to US firm for £492mlast_img

 

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