US real estate investment trust Realty Income has extended its aggressive push into UK retail into shopping centres, going under offer to buy The Lexicon in Bracknell.
The major UK shopping and leisure complex is being sold by a joint venture between Schroder Capital UK Real Estate Fund and Legal & General Capital, for up to £160 million, CoStar News understands.
JLL has been handling the sale of the complex in the heart of the East Berkshire town with a guide price of around £160 million attached. The Lexicon was developed by The Bracknell Regeneration Partnership, the 50:50 joint venture, in partnership with the local council. Principal tenants include Marks and Spencer, Primark, Next, JD and Fenwick.
Market sources said the winning party is highly acquisitive US REIT Realty Income Corporation, which has principally focused on retail parks and supermarkets in the UK and avoided shopping centres as it has rapidly built a huge portfolio in recent years. Other interested parties had been European asset manager Balmain and NewRiver REIT.
The centre is one of a number of major UK shopping centres on the market. In the coming weeks, initial bids are expected for the 50% stake in Manchester Arndale shopping centre that has been launched for sale seeking around £235 million.
The stake was taken on by investors after malls group Intu collapsed into administration in 2020 and was offered for sale via a right of first refusal to M&G Real Estate, which owns the remainder. It then came to market in May in a formal process via JLL which is selling the stake on behalf of the former Intu revolving credit facility investors.
Earlier this month CoStar News revealed that a 50% stake in the 1 million-square-foot Silverburn shopping centre near Glasgow is coming to market with a price of up to £85 million. Cushman & Wakefield has been appointed on the sale.
Henderson Park and Eurofund bought the mall in 2022 from 50:50 joint venture partners Hammerson and Canada Pension Plan Investment Board for £140 million, with Henderson Park the majority investor. It is now seeking a co-investor.
The entrance of Realty into the shopping centre space could be a game changer for the market in the UK, given its recent dominance of the retail park and supermarket investment markets.