Land Securities is to raise its stake in X-Leisure to 95%, after agreeing to purchase a further 35.6% interest in the UK’s largest leisure fund, for £104m.
The X-Leisure Unit Trust, which has assets valued at £590m, produces a £39.6m annualised net rental income and a 6.4% net initial yield.
Land Securities acquired its initial 12% holding in the trust in 2012 and extended its ownership to 54% in January this year with the purchase of a 42% interest together with 100% interests in the trust’s management companies. A further 5.4% was acquired in March.
Land Securities’ acquisition of the additional 35.6% of the trust is unconditional and completion is expected no later than 26 September.
The X-Leisure portfolio comprises 16 schemes, totalling 3.1m sq ft of leisure and entertainment space, including Xscape in Milton Keynes and Brighton Marina . The portfolio includes cinemas, two ski slopes, bars, restaurants, clubs, health and fitness and retail properties.
Land Securities’ executive director Richard Akers said: “Eighteen months ago Land Securities had no major standalone leisure assets. Today we are the UK’s biggest leisure landlord with significant exposure to a sector which is seeing strong occupational demand. We have gained control of X-Leisure without paying a premium.”
