New owner forWales’ largest shopping centre
WALES biggest shopping centre, St David’s in the centre of Cardiff, is set to be sold as part of a multi-billion-pound property deal.
The retail centre provides more than 1.4 million sq ft of retail and leisure space and has tenants including John Lewis, Debenhams and Marks & Spencer.
It is currently owned by Intu in a joint venture partnership with Land Securities. But now shopping mall owner Hammerson has tabled a £3.4bn offer for smaller business Intu, whose other retail interests in the UK include Manchester’s Trafford Centre and Eldon Square in Newcastle.
The deal would see an enlarged Hammerson with a £21bn portfolio of retail and leisure properties in the UK and mainland Europe.
St David’s, which opened in 2009, has an average footfall of more than 40 million a year.
Hammerson were asked if they would seek to also acquire Land Securities’ interest in the scheme, or would be happy for them to continue to have a stake post a deal with Intu.
Land Securities were also asked, but declined to comment.
Hammerson, whose interests include Birmingham’s Bullring and Cabot Circus in Bristol, already has backing from shareholders of Intu with more than a 50% stake in the business.
Hammerson said that deal would provide opportunities for significant rationalisation of the enlarged group’s property portfolio, through an anticipated disposal programme of at least £2bn.
The company said it was too early to say what assets could be surplus to require. However, it is unlikely that St David’s, due to its strong tenant and footfall figures, would come into that category.
Chief executive of Hammerson David Atkins said: “This marks an exciting milestone in the history of Hammerson.
“Bringing together the high quality portfolios of both companies establishes Hammerson as a larger, leading European retail REIT (real estate investment trust), enhances shareholder returns and supports opportunities for long-term growth.
“The acquisition creates a leading pan-European platform of desirable retail and leisure destinations which are better positioned to serve the needs of our retailers, excite our customers and support our partners and communities.
“I hold Intu’s high quality centres in high regard and I look forward to working with a strengthened team to enhance the performance of our entire portfolio.”
John Strachan, chairman of Intu and proposed senior independent director of the enlarged group, said: “A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.
“Intu offers high quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition.”