British Land is selling its stake in Sheffield’s Meadowhall shopping center for £360m

British Land has sold its 50% stake in Sheffield’s Meadowhall for £360m, ending its 25-year ownership of the shopping centre.

The owner, which is one of the UK’s biggest property developers, has sold the stake to joint venture partner Norges Bank Investment Management as it shifts its portfolio away from indoor shopping centers in favor of retail park investments.

In a trading update, the firm told investors on Monday that “the proceeds will be used for general corporate purposes, including reinvestment in retail parks.”

The deal is expected to be completed in July.

This property developer has transferred its 50% stake in Meadowhall (pictured) to joint venture partner Norges Bank Investment Management for £360m.

The cash-strapped firm paid £1.07bn for the shopping center in 1999, later selling half of its holding to form a joint venture.

The sale to Norges, together with the joint venture’s £7m sale of land earlier this year, valued the Meadowhall estate at £734m.

British Land will remain as asset manager of the shopping center after the sale.

Simon Carter, chief executive of British Land, said: “We have had a successful partnership with Norges over many years and we are delighted to continue working alongside them as asset managers of the centre.

“Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and urban logistics in London.”

The Meadowhall site is located on the outskirts of Sheffield and is home to stores including Marks & Spencer, Primark and Next, as well as a distribution centre, a Premier Inn hotel and two development sites.

The news comes as the firm sold its half stake in the Euston office building to Royal London Asset Management in March.

It sold its 50% stake in 1 Triton Square, Regents Place, for £192.5m, with the pair now operating the building as a joint venture.

In November, British Land reported a loss of £61m in the six months to September, compared with £32m in the equivalent period in 2022, as high interest rates hit property values.

It blamed rising yields on its West End and City of London “campuses” portfolio and increased economic and political uncertainty for a 2.5% drop in the value of its portfolio to £8.7bn.

Shares in British Land fell 0.84 per cent to 399.80p in morning trade on Monday.