Adds company commentary, background
September 24 (Reuters) – Commercial owner Land titles EARTH.L said on Friday it had sold two retail parks for 54.3 million pounds ($ 74.42 million), as part of a plan to exit non-essential activities as the pandemic reshapes the industry.
Business owners are strengthening their finances after underperforming the wider real estate industry as multiple closures and a prolonged moratorium on rent collection disrupted income streams, especially from their retail-oriented assets.
“Retail parks represent a small-scale industry for us and a clear opportunity to realize capital that can be better deployed in areas where we have a competitive advantage, such as central London and urban regeneration projects. mixed-use, ”Phillip Davies, head of Land Securities investing, said in an emailed statement.
FTSE 100, one of Britain’s largest business owners, sold Derwent Howe Retail Park in Workington, Cumbria and Blackpool Retail Park to Supermarket Income REIT SUPR.L and Columbia Threadneedle, respectively.
Land Securities, which counts offices as its largest segment, still has seven retail parks in its portfolio following the divestitures.
Shopping parks are expected to attract better reviews because they have been relatively resilient during the COVID-19 pandemic, in part because essential retailers were allowed to operate during the lockdown of these parks which also offer in-car shopping experiences and outside.
In April, mall operator Hammerson Plc HMSO.L left the UK retail fleet business, selling seven retail parks to Canadian private equity firm Brookfield Asset Management BAMa.TO for 330 million pounds.
($ 1 = 0.7296 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
(([email protected]; +919986528692))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.