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LandSecs nears £270m deal for Cabot Circus stake

Land Securities is closing in on a deal to sell its half share in the Cabot Circus shopping centre in Bristol for a price thought to be around £270m.

Property Week understands that Axa Real Estate Investment Managers is the frontrunner to buy the 50% stake in a deal which would reflect a yield of around 6.25%.

It is thought that the client being advised by Axa is Chinese investment firm Gingko Tree Investment. The fund manager also advises other overseas funds including Canadian pension fund PSP, Norges Bank Investment Management and the Korean Hanwha Group.

No heads of terms have yet been agreed, but Axa is edging ahead. The other main bidder on the scheme is understood to be the Abu Dhabi Investment Authority.

The sale is understood to also include assets along Quakers Friars and Broadmead. The other 50% stake in the scheme is owned by Hammerson.

The 1.5m sq ft scheme was built by Hammerson and Land Securities in 2008 and is anchored by retailers including Harvey Nichols, House of Fraser, Next and H&M.

The sale comes as a flood of both domestic and international investors are currently vying for a number of prime shopping centre assets, which were put up for sale this autumn. Intu’s Uxbridge shopping centre is currently on the market for around £212m, while Westfield is marketing its Derby mall for around £400m. Land Securities is also looking to sell its Overgate shopping centre in Dundee for £125m.

Jones Lang LaSalle is advising Land Securities on the sale. Lunson Mitchenall is advising Axa. All parties declined to comment.


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