The 50:50 jv, BL Universal, had been sent up between British Land and retailer GUS in February 1997, when it bought 982 properties from the GUS group. Now British Land has paid GUS £120 million ($203 million) for its 50% share plus £43 million ($72.7 million) to repay a loan from the retailer to the jv.
The deal values BL Universal at £240 million ($406 million), gross property assets at 30 September 2003 were £761.2 million ($460.5 million) and net annual income £50.3 million ($85.1 million).
British Land intends to fund the acquisition from its existing cash resources. Since 1997 when the jv was set up 894 of the 982 properties in the portfolio have been sold and the receipts reinvested mainly in retail parks.Now the portfolio, which includes 101 properties, is 80% retail (shops 40%, retail warehousing 30%, supermarkets 10%) and 20% offices.
John Peace, chief executive of GUS, said: "Since 2000, we have been refocusing on our chosen growth businesses. The disposal of our property joint venture is a further natural step in this process."
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