British Land disposes of Meadowhall asset after 25 years

Real estate investment trust British Land has its 50% stake in Sheffield retail destination Meadowhall for £360m, offloading an asset it has held for 25 years.

The sale gives partner Norges Bank Investment Management full control of the shopping centre, which British Land first purchased in 1999 for £1.07bn.

The company said the deal was in line with its strategy to focus on retail parks and reduce exposure to covered shopping centres.

The sale price – including the £7m disposal of ancillary land by the British Land-Norges Bank joint venture earlier this year – values the whole Meadowhall Estate at £734m, 3% above the September 2023 book value.

After settling net debt of around £200m, the proceeds of the sale will be £156m, which will be used for general corporate purposes and reinvestment into retail parks, British Land said.

However, as part of the transaction, British Land will remain as asset manager of Meadowhall shopping centre, for which it will continue to earn fees in line with current terms, it said.

"We have had a successful partnership with Norges over many years and are delighted to continue to work alongside them as asset managers of the centre," said chief executive Simon Carter.

"Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and London urban logistics."