Commercial property company British Land (LSE: BLND) enters its fifth JV (joint venture) with retailer Tesco (LSE: TSCO) by acquiring fellow property company Segro’s (LSE: SGRO) 50% stake in the JV in the Surrey Quays shopping centre in South East London and the Clifton Moor Retail Park in York.
The property value and annual passing rents attributable to the 50% interest are £87 million and £5.65 million respectively, of which rents from Tesco, whose superstores anchor both centres, represent 52%.
“We are delighted to enter into a further JV with Tesco. These retail locations offer attractive opportunities for our asset management expertise to add value over the short and medium term,” said Chief Executive of British Land Chris Grigg.
Surrey Quays is located in Rotherhithe on the peninsula of the south bank of the River Thames. The scheme totals 283,000 sq ft (square feet) in 43 units and is anchored by a 115,000 sq ft Tesco Extra Foodstore and a 53,000 sq ft BHS with the mall units arranged mainly at ground floor level between the two anchors.
Other retailers represented on the scheme include Arcadia, Boots, Currys, JD Sports, New Look, River Island and WH Smith.
Clifton Moor is located 3 miles north of the City Centre the scheme totals 222,728 sq ft including a 116,610 sq ft Tesco Foodstore.
Retailers on the scheme include Wickes, Wilkinsons, Booths and Pets at Home.