LandSec Pays $215M for Shopping Center

LONDON-Land Securities has bought Hatfield Galleria in Hertfordshire from Lehman Brothers Real Estate Partners for euro 180.63 million ($214.75 million), reflecting an initial yield of 5.5%. The acquisition means that Land Securities now has retail portfolio of 31 shopping centers, 32 retail parks and 12 supermarkets.

The 329,925-sf shopping center comprises 85 shops and restaurants, a nine-screen UCI cinema and 1,745 car-parking spaces. It was built in 1991 and has since been turned into a factory outlet center and now has unrestricted planning consent for retail use.

“Our shopping-center portfolio has grown significantly this year and it will be strengthened further by the purchase of Hatfield Galleria,” says Richard Akers, managing director of LandSec’s retail portfolio. He adds that the new buy “provides the opportunity for extensive asset management growth in a prominent location.”

WD Galleria will continue to manage the asset. Brian Oakwell & Co. and Cushman & Wakefield Healey & Baker are letting agents. Land Securities was advised by Knight Frank. Franc Warwick advised Lehman Brothers Real Estate Partners.