Sovereign wealth fund closing in on Meadowhall deal
NORWAY’S sovereign wealth fund is set to complete the £750m purchase of a 50% stake in the Meadowhall shopping centre in Sheffield, leaving British Land with its 50% ownership.
According to Property Week, and in a deal that could be announced as early as next week, Norges Bank Investment Management, which manages the £376bn sovereign wealth fund, and British Land have agreed terms of a joint venture that will own the 1.4m sq ft mall on a 50:50 basis.
Norges is on the verge of buying the half-share in the centre owned by London & Stamford Property and the Abu Dhabi Investment Council, at a price that values the centre at £1.5bn — a yield of 5.5%.
If a deal goes through it will be the largest ever property investment by an overseas investor outside London.
British Land had previously been expected to sell half of its stake to Norges, giving the fund a 75% ownership. But the parties have now decided that a 50:50 ownership structure is the best for both, Property Week said.
British Land has been pleased with Meadowhall’s performance this year, and felt there was no real need to sell.