Following Hammerson's £584m cash call this morning, comes news that fellow property company British Land is selling a half share of its Meadowhall shopping centre near Sheffield for £587.7m.
The deal, which involves £170m in cash and takes account of Meadowhall's £835m of third party debt, values the centre at £1.175bn. The joint venture partner is London and Stamford Property.
British Land, due to report third quarter earnings on Thursday, said the deal was one of a number of actions it was taking to boost its balance sheet. Analysts believe a rights issue is also under consideration. Credit Suisse had suggested a cash call of £650m might be needed, even if the company sold half of Meadowhall and 30% of the Broadgate development in the City of London.
Investors welcomed the deal, with British Land shares climbing 52.5p to 507p. Hammerson meanwhile is 36.25p better at 433.25p.
