Land Securities Group (LSE:LAND) told investors it has completed the purchase of an additional 10% stake in Bluewater, one of the UK's top-10 retail destinations, for net cash consideration of £95m.
The deal takes Landsec's ownership interest in the Kent shopping centre to 74.0%, and the company said the consideration implies a 7.4% yield based on the net rental income its existing Bluewater investment generates.
Landsec said the larger stake improves the operational flexibility of its overall investment and will drive additional efficiency benefits.
Retail sales at Bluewater rose 7.4%, and footfall increased 3.0% over the five months to 31 August, against UK national averages of minus 1.7% and flat footfall respectively over the same period, which the company said underlines the centre's appeal to leading brands and its income growth prospects.
The purchase follows Landsec's agreement earlier this month to buy a further stake of roughly £100m in its existing retail portfolio, part of a wider consolidation drive that has also seen it exchange contracts to acquire 100% of Metrocentre in Gateshead for net cash consideration of £516m, funded alongside a non-pre-emptive equity issue targeting roughly £500m.
Landsec's full-year results in May guided to like-for-like net rental income growth of 3-5% for the year to March 2027, with management citing strong demand for its "best-in-class assets" as a driver of that trajectory.