Property giant Landsec is in discussions to increase its stake in the popular shopping mall Bluewater in Kent. It is reported that Landsec is looking to purchase an additional 25% stake from Lendlease at a discounted price of £200 million. This would reduce Lendlease’s stake in Bluewater and give Landsec a controlling 55% ownership in the 1.8 million square foot location. This acquisition could potentially pave the way for Landsec to acquire full ownership of the mall.
Other owners of Bluewater include M&G Real Estate and Singapore sovereign wealth fund GIC, each holding a 17.5% stake, along with Royal London Asset Management (7.5%) and Aberdeen Asset Management (2.5%). The £200 million price for Lendlease’s stake is significantly lower than previous estimates, reflecting the decline in retail property values in recent years.
In 2014, Landsec initially acquired a 30% stake in Bluewater from Lendlease for £656 million. If retail property values had remained strong, the remaining 25% stake would have been valued at over £500 million. Lendlease was believed to be seeking at least £400 million for its remaining holding.
Aside from its stake in Bluewater, Landsec also gained the management rights for the shopping mall and surrounding land in 2014. This land is crucial to Landsec’s interest in the location as it plans to develop residential and workspace areas in line with its mixed-use strategy. These developments would enhance the Bluewater area and attract more shoppers living and working in close proximity to the mall.
Bluewater, which opened in 1999, is currently the fifth-largest mall in Britain and houses 330 stores, numerous dining options, a cinema, and other attractions. Despite facing challenges with the closure of fashion retailers such as Oasis, Coast, and Topshop/Topman, Bluewater remains a highly regarded shopping destination in the UK. Zara introduced its first UK concept store at Bluewater, and Amazon also opened its UK 4-Star shop there. Furthermore, many of M&S’s noteworthy physical store initiatives have debuted at Bluewater.
The potential acquisition of a larger stake in Bluewater reflects Landsec’s continued interest in the retail property market and its confidence in the future prospects of this prominent shopping destination.
Useful Links:
– Bluewater website
– Landsec website
