Comprising separate transactions with two debt holders, the overall purchase price represents a discount to the £113m September 2022 book value of Landsec’s existing 50% share of the centre, with a net initial yield of 9.7% and an equivalent yield of 9.7%.
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Leasing momentum in St David's has been strong, as the centre benefits from brands’ ongoing "flight to prime". Since March 2022, 36 leases have been signed or are in solicitors hands, on average 11% ahead of ERV. In the last 18 months, several brands have relocated to St David's from elsewhere in the city, agreed to open new stores, or upsized their existing stores, including Zara, Ivy Asia, Gaucho, Footasylum and The Fragrance Shop.
Via a separate deal, Landsec has also acquired the adjacent vacant Debenhams store for a minimal sum. All combined, this unlocks the opportunity to deliver its future vision for the centre, to further enhance its attraction for brands and guests. This will introduce new public spaces, elevated F&B/leisure concepts and a refreshed brand mix, and is expected to deliver a high single digit income return on incremental capex.
