Landsec to buy U+I, adds major retail developments to portfolio
Landsec is to buy urban regeneration specialist U+I for around £190m, giving the property giant a significant new pipeline of mixed-use regeneration schemes in its London and Manchester markets.
Acquired through its newly-formed subsidiary LS Development, Landsec said it will see value “from combining U+I’s front-end development capabilities and portfolio of regeneration projects that need funding”, with Landsec’s development expertise and strong balance sheet.
The timely purchase “would now speed-up the development of three of U+I key sites”, it added.
These include the large Manchester Mayfield scheme, where work has already started on-site. Ultimately, this will provide 2 million sq ft of office, retail and leisure space and 1,500 new homes set around a 6.5 acre public park.
Landsec will also bring forward Morden Wharf on Greenwich Peninsular, which has resolution for planning consent for 250,000 sq ft of warehouses and retail plus 1,500 homes,
Also in London, U+I is planning to deliver Landmark Court a joint venture with Transport for London in Southwark for a 200,000 sq ft retail and office complex.
The U+1 deal is part of Landsec’s key strategy to recycle investment to “drive growth and generate higher returns”, including through urban opportunities in London and other major regional cities.
Mark Allan, chief executive of Landsec, said: “Developing truly world-class mixed-use communities that inspire and create opportunity is more important than ever.
“The combination of Landsec and U+I is compelling and will help us accelerate our strategy, both by introducing exciting new Urban development opportunities and by further strengthening Landsec’s front-end development capabilities and placemaking skills.”
The deal is expected to complete by December or in early 2022.
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