Land Securities and J Sainsbury form joint venture to maximise property potential
14 November 2007
Land Securities and J Sainsbury plc have today announced the creation of a 50:50 joint venture that combines Land Securities’ expertise in creating retail destinations with three Sainsbury’s stores that have development potential.
The ‘Harvest Limited Partnership’ (the Partnership), initially involves three properties with an aggregate value of £113.4 million and will run for a proposed initial term of seven years. Land Securities will contribute a Sainsbury supermarket in its ownership in Hull with Sainsbury’s contributing two freehold stores in Thanet and Wandsworth.
The stores will all be let to Sainsbury’s on new 25 year leases, they all have development potential and the Partnership aim is to look to maximise the property potential at each site both for the Sainsbury store and for the customers visiting for a wider shopping experience.
The agreement also envisages the expansion of the portfolio through the addition of other suitable retail properties and a programme of potential extensions and development opportunities.
Richard Akers Managing Director of Retail, Land Securities said of the deal: “This joint venture means we access key development opportunities and gain a partnership with one of the UK’s leading retailers. These three sites all have potential for development which we can help unlock through our expertise.
“We are very excited about this opportunity and look forward to a long and successful partnership which increases in size as other suitable opportunities are identified.”
Peter Baguley, Sainsbury’s Property Director said: “This joint venture is part of the active management of our property portfolio outlined in May and gives us access to the specialist development skills of Land Securities. It allows us to maximise the development potential at each site, improving our customer offer and the value of the property, whilst retaining operational control and flexibility.”
Land Securities will use its property expertise to act as Development Manager to the joint venture and to provide asset management and administration roles.
The properties included within the portfolio are:
Hull – A Land Securities site where Sainsbury’s have a store with 600 car parking spaces and where they sublet some space to Homebase with a garden centre.
Wandsworth – A freehold Sainsbury’s store with 449 car parking spaces opposite a shopping centre held by the Metro Fund joint venture between Land Securities & Delancey.
Thanet – A freehold Sainsbury’s store with 428 car parking spaces and is adjacent to the Land Securities owned Westwood Cross retail park
In a separate transaction, Land Securities has exchanged contracts to sell two existing stores to Sainsbury’s in Winchester and Wednesfield.
For further information:
Donal McCabe/Mel Winsor/Richard Akers
Land Securities Group PLC
T +44 (0)20 7413 9000
Notes to editor:
Land Securities is the UK’s leading real estate investment trust. Retail property forms a major share of our multi-billion pound portfolio. Our national network of shopping centres and retail parks includes the Bullring, Birmingham, and Gunwharf Quays in Portsmouth and our retail development programme is transforming the landscape of several leading city centres. Land Securities’ investment portfolio also encompasses retail and office property in London, including landmark buildings such as the Piccadilly Lights. We are also one of the leading names in property outsourcing, and through urban community development are involved in long-term, large-scale regeneration projects in the south-east.