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LandSec-Sainsbury's JV sells Birmingham retail park development
A joint venture between Land Securities and Sainsbury's sold Selly Oak Shopping Park in Birmingham for £94m to an investment buyer.
The Harvest Partnership 50-50% joint venture forward-sold the 190,000 sq ft development, which is 91% pre-let to retailers including Sainsbury's, Marks & Spencer, Nando's and Superdrug, to M&G Real Estate. LandSec and Sainsbury's will each get 50% of the proceeds.
This follows the JV's forward-sale of an adjacent student accommodation unit to Unite last September for £37m.
LandSec will develop both sites and will exit both parts of the scheme upon practical completion, which are due to reach practical completion in autumn 2018 and summer 2019 respectively.
LandSec's head of retail development, Andrew Dudley, said: "This is a clear example of Landsec working with a respected partner to deliver the right product at the right time. The scheme has seen strong demand for retail space and will offer a high-quality mix of brands for local consumers. Having de-risked the scheme with a 91% pre-let, this sale enables us to crystallise value on this development."