Sept 24 (Reuters) - Commercial landlord Land Securities
said on Friday it sold two retail parks for 54.3
million pounds ($74.42 million), as part of a plan to exit
non-core businesses as the pandemic reshapes the sector.
Commercial landlords are shoring up finances after having
underperformed the wider real estate sector as multiple
lockdowns and an extended moratorium on rent collection
disrupted the income streams, particularly of their
"Retail parks represent a subscale sector for us and a clear
opportunity to realise capital that can be better deployed in
areas where we have a competitive advantage such as central
London and urban mixed-use regeneration projects," Phillip
Davies, Land Securities' head of investment, said in an emailed
The FTSE 100 firm, one of Britain's biggest commercial
landlords, sold Derwent Howe Retail Park in Workington, Cumbria
and Blackpool Retail Park to Supermarket Income REIT
and Columbia Threadneedle, respectively.
Land Securities, which counts office space as its biggest
segment, has seven retail parks remaining in its portfolio
following the disposals.
Retail parks stand to attract better valuations as they have
been relatively resilient during the COVID-19 pandemic, partly
because essential retailers were allowed to operate during the
lockdown from these parks that also provide for drive-in and
open-air shopping experiences.
In April, mall operator Hammerson Plc exited the UK
retail parks sector, selling seven retail parks to Canadian
private-equity firm Brookfield Asset Management for
330 million pounds.
($1 = 0.7296 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Subhranshu Sahu and Rashmi Aich)