(Adds detail from Land Securities statement)
By Lincoln Feast and James Davey
SYDNEY/LONDON, June 25 Britain's Land Securities
has paid Australian property company Lend Lease Corp
656 million pounds ($1.1 billion) for a 30 percent
stake in the Bluewater shopping centre in Kent, southeast
England, the companies said on Wednesday.
The British property group also acquired full asset
management rights for the centre and 110 acres of surrounding
land for 40 million pounds.
The overall net initial yield after expiry of rent-free
periods is 4.1 percent, Land Securities said.
Bluewater's 1.8 million square feet of space is home to more
than 330 retailers, cafes, bars and restaurants.
The deal leaves Lend Lease Retail Partnership with 25
percent of Bluewater, while M&G Real Estate and GIC own 35
percent. Asset managers Hermes and Aberdeen Asset Management
control 10 percent.
The deal increases Land Securities' exposure to the
southeast of England.
Lend Lease said the disposal would boost its 2014 earnings
by more than 45 percent. It said it expected a full-year net
profit of between A$810 million ($761 million) and A$830 million
and anticipated paying out 50 percent of net profit in
Consensus forecasts from Thomson Reuters I/B/E/S had pegged
net income expectations at around A$536 million.
($1 = 0.5956 British Pounds)
($1 = 1.0639 Australian Dollars)
(Editing by Stephen Coates and David Holmes)