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(Sharecast News) - Commercial property development and investment firm Landsec said on Tuesday that it has acquired a further 10% stake in Bluewater Shopping Centre, taking its ownership of the Kent retail destination to 74%.
Landsec paid £95m for the additional interest, a price it said reflects a 7.4% yield based on the net rental income generated by its existing holding. Landsec added that increasing its stake would give it greater operational flexibility and help drive efficiency across the investment.
The FTSE 100-listed firm said Bluewater remains one of the UK's top retail destinations and that it continues to benefit from major brands concentrating on "fewer, bigger, better stores" in prime locations.
Over the five months ended 31 August, retail sales at the Kent shopping centre rose 7.4%, while footfall increased 3% - both materially ahead of UK national averages of -1.7% and 0%, respectively.
Landsec added that the strong trading performance underlined Bluewater's appeal to key retailers and supported its longterm income growth prospects.
As of 0855 BST, Landsec shares were up 1.14% at 618.50p.
Reporting by Iain Gilbert at Sharecast.com
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