Harvest Partnership sells Selly Oak Shopping Park to M&G Real Estate
4 June 2018
The Harvest Partnership, a joint venture between Landsec and Sainsbury’s, has forward sold Selly Oak Shopping Park to M&G Real Estate for a headline price of £94 million. Landsec will receive 50% of the proceeds.
The 190,000 sq ft scheme is 91% pre-let to retailers including Sainsbury’s, Marks & Spencer, Nando’s and Superdrug. The development will also deliver highways improvements and canal enabling works, as well as a new public realm.
Andrew Dudley, Head of Retail Development, Landsec said: “This is a clear example of Landsec working with a respected partner to deliver the right product at the right time. The scheme has seen strong demand for retail space and will offer a high-quality mix of brands for local consumers. Having de-risked the scheme with a 91% pre-let, this sale enables us to crystallise value on this development.”
The sale of the retail scheme mirrors that of the adjacent student accommodation unit, which was forward sold by The Harvest Partnership to Unite in September 2017 for £37 million.
Landsec will develop both sites under Development Management Agreements and will exit both parts of the scheme upon practical completion. The retail scheme and student accommodation are due to reach practical completion in autumn 2018 and summer 2019 respectively.