Property giant Land Securities - part of the consortium behind the building of Birmingham's Bullring shopping centre - yesterday clinched a £360 million deal to take over Lxb, a private specialist retail warehouse and supermarket investor.
Lxb owns two retail warehouse assets in Bracknell and Chester, a partnership interest in a joint venture with Deutsche Asset Management and ten supermarket assets.
The retail warehouse properties produce annual rental income of around £6.3 million and the supermarket assets around £9 million. The acquisition gives Land Securities in total 30 retail warehouse parks and 12 supermarkets.
Chief executive Francis Salway said the company believes out of town retail sites will deliver the strongest growth in the future.
"It is exactly these areas of the retail market that we are capturing through this acquisition - building upon our market leading position in UK retail," he added in a statement.
While the group, like others in the sector, has struggled with its office portfolio, the strength of the retail and shopping centre assets helped to mitigate a sharp decline in the London office market, which is now showing signs of recovery.