Land Securities Group plc, (Landsec), UK’s largest commercial property investment and development firm has reportedly announced that it has proposed to takeover U+I, an urban regeneration specialist, for approximately £190 million.
According to reports, the proposed cash offer is approximately 73% premium to the share price of U+I and would give the prominent London-based office developer a substantial new portfolio of mixed-use regeneration property schemes across Manchester and London.
Landsec supposedly stated that the acquisition, which would be made with the help of a newly-established subsidiary; LS Development, would see value from integrating U+I’s capabilities of front-end development, and pipeline of regeneration projects that require investment, with the strong development expertise and balance sheet of Landsec.
The London property giant also stated that it would now accelerate the development of three key U+I sites. These sites include the big Manchester Mayfield scheme, which has already seen construction work start on location. Eventually, these would provide 2 million sq. ft of retail, leisure, and office space and over 1,500 new homes sprawled around a public park spanning 6.5 acres.
Landsec would also bring Morden Wharf forward on the Greenwich Peninsula, which possesses planning consent resolution for around 1,500 homes, and over 250,000 sq. ft of retail and warehouses.
Additionally in London, U+I is also planning to deliver a joint venture; Landmark Court, in Southwark with Transport for London for a 200,000 sq. ft office as well as retail complex.
Mark Allan, Landsec CEO, stated that developing truly mixed-use world-class communities that create as well as inspire opportunity is more crucial than ever. The integration of U+I and Landsec is compelling and would greatly help the company accelerate its strategy, by further strengthening its front-end property development capabilities as well as placemaking skills, and introducing thrilling new opportunities of urban development.
Allan added that Landsec possesses tremendous potential and the transaction is a testament of the company’s ability to capitalize on its strengths and generate future value for all stakeholders; employees, investors, partners, and communities alike.
As per reports, the proposed deal is projected to complete by the end of December or by early in 2022.