Landsec boosts stake in Bluewater to 66.25%, acquiring additional 17.5% for £120m

Landsec has successfully increased its ownership stake in Bluewater, one of the UK’s premier retail destinations, by acquiring an additional 17.5% from GIC for £120 million. This strategic purchase elevates Landsec‘s total stake in Bluewater to 66.25%, marking a significant expansion in their investment portfolio.

This acquisition not only strengthens Landsec’s position in the retail sector but also increases its net rental income by an annualized £10.3 million, based on the income generated by Landsec’s existing investment in Bluewater over the year to March 2024. The move aligns with Landsec’s strategic objective to enhance its investments in major retail destinations, utilizing the capital from recent non-core disposals in a manner that accretes earnings.

Bruce Findlay, Managing Director – Retail at Landsec, emphasized the value of this transaction: “This transaction underscores our ability to continue to create value through prime investments in scarce, major retail destinations with attractive return profiles. Bluewater is one of the UK’s top retail destinations and a key part of our strategy to further build our relationships with key brands.”

Since its opening in March 1999, Bluewater has been a cornerstone of the UK retail landscape. Managed by Landsec, Bluewater has evolved into a model of experience-led retailing, hosting over 300 stores, restaurants, and entertainment venues across its 240 acres. Annually, it attracts more than 27 million visitors, cementing its status as a dynamic and enduring retail and leisure destination.

Landsec’s involvement has been pivotal in transforming Bluewater into a premier shopping and leisure hub. The site’s ability to attract a vast number of visitors annually showcases its continued relevance and appeal in a competitive retail market.

Landsec stands as one of Europe’s largest real estate companies, with a diverse portfolio encompassing retail, leisure, workspace, and residential hubs. Committed to sustainability and community engagement, Landsec aims to shape a better future by leading the industry in environmental and social sustainability. This approach ensures value creation for shareholders while delivering enriching experiences for guests and fostering positive community change.

The acquisition of an additional stake in Bluewater by Landsec is a testament to the company’s focused investment strategy in high-quality retail assets. By increasing its stake, Landsec not only boosts its revenue through enhanced rental income but also consolidates its influence over one of the UK’s leading retail centers. This move is likely to enhance Landsec’s ability to innovate and adapt in the rapidly evolving retail environment, ensuring long-term growth and stability.

Landsec’s increased investment in Bluewater represents a strategic enhancement of its retail portfolio, aligning with its broader objectives of growth, sustainability, and community integration. As Landsec continues to invest in and develop its properties, it remains a key player in shaping the landscape of European real estate.