Landsec, one of the largest property companies in the UK, has recently made a significant acquisition in Bluewater mall located in Kent. The company has purchased an additional 25% stake in the mall, valued at £172 million, effectively buying out Lendlease Retail Partnership. This move is seen as part of Landsec’s long-term plan to potentially gain a controlling stake in Bluewater.
However, as Landsec increases its ownership, it has also agreed to sell a quarter of its newly acquired share to co-owner M&G. This sale is to accommodate M&G’s pro rata share of the purchase price. Consequently, Landsec’s ownership of Bluewater will be reduced to 48.75%, rather than the originally intended 55%.
This acquisition is not the first time Landsec has been involved with Bluewater. Back in 2014, the company acquired a 30% stake in the mall from Lendlease for a whopping £656 million. Interestingly, the recent purchase of an additional stake comes at a much lower price. Had Landsec waited to acquire the remaining 25% at a later date, it could have cost them over £500 million. However, the lower price of the deal was successfully negotiated.
Bluewater, which opened its doors in 1999, was previously the largest mall in Europe. While it has since been surpassed by larger retail openings, it still stands as one of the UK’s largest out-of-town shopping centers and the biggest one in South East England. Situated approximately 23 miles east of Central London, the mall holds a prominent position in North West Kent.
Despite facing some store closures due to the pandemic, such as Topshop and Miss Selfridge, Bluewater continues to attract prestigious brands. Recently, Monsoon chose to introduce its second new concept store at Bluewater. Amazon also opened its first non-food store in the UK at the mall, while Zara transformed its store into its debut new-concept site in the country. Other notable brands at Bluewater include Apple, John Lewis, Next, H&M, Uniqlo, and Primark.
With an annual turnover that exceeds £1 billion and a catchment population of approximately 3.9 million people, Bluewater remains a thriving retail destination. Landsec recognizes the strength of the mall and its potential for future success. Bruce Findlay, the Managing Director of Retail at Landsec, highlighted the company’s commitment to major retail destinations that offer a unique experience not easily replicated online.
The recent acquisition of a stake in Bluewater aligns with Landsec’s announcement of a new brand account management team and operating model for its retail business. These strategic moves demonstrate Landsec’s dedication to reimagining retail and adapting to the evolving landscape of the industry.
Landsec initially gained management rights for Bluewater and its surrounding land in 2014 when it acquired its initial stake. The value of the land and its potential for development are likely contributing factors to Landsec’s ongoing interest in the location.
With its increased ownership in Bluewater, Landsec aims to solidify its presence in the retail sector and contribute to the continued success of one of the UK’s most prominent shopping destinations. The deal is expected to be finalized in April 2022.
Useful links:
1. Landsec – Official website of Landsec, providing further information about the company and its activities.
2. Bluewater – Official website of Bluewater, offering details about the mall, its stores, and events.
