Land Securities sells its share of the iconic Bullring shopping centre for £210m.

Land Securities has confirmed that it has sold its 33% share in the iconic Birmingham shopping centre – the Bullring – for £210 million, revealing a net yield of 6.85%.

Land Securities, the UK’s largest Retail Estate Investment Trust (REIT), has sold its share of the Bullring to the Future Fund. An investment fund for the Australian Government, this was established in 2006 to address the Australian Government’s unfunded superannuation liabilities and at the end of June 2009, its assets totalled more than AU$61.04 billion.

Richard Akers, Managing Director for Land Securities commented on the sale: “The Bullring was instrumental in transforming the Birmingham retail offer and has performed well for us.

“However, the absence of operational control over the Bullring made it an unusual asset within Land Securities’ portfolio where we look to create value through successful development and active management.

“The funds generated by the sale will increase the Group’s flexibility to exploit future opportunities.” 

The Bullring was reopened in 2001 after being extensively refurbished and has been pivotal in transforming Birmingham into a world-class retail city.

This latest move by the Australian Government follows an announcement in August that Future Fund had sold 34% of its stake in telecommunications firm Telstra, leaving it with a 10.9% holding in the company as it adapted its plans to “build a portfolio consistent with a long-term mandate and strategy.”