Nabarro acts on high profile Meadowhall acquisition

Nabarro LLP has advised new client, the AIM-listed London & Stamford Property Limited ("London & Stamford Property") and its joint venture partner on the acquisition of a 50% stake in the Meadowhall Shopping Centre, from British Land for a maximum cash consideration of £170 million.

The purchase price values Meadowhall at £1.175 billion, reflecting an initial yield of 6.75%. The joint venture will continue to benefit from Meadowhall's £835 million of securitised debt at an average interest rate of 4.98%. The purchase price has an up front payment of £123 million in cash with deferred consideration of £47 million.

Located in South Yorkshire, Meadowhall is one of the UK’s top six regional shopping centres and comprises c. 1.5 million sq ft of retail and leisure accommodation let to international and national retailers and leisure operators. It also boasts two petrol filling stations, a hotel, a restaurant and a distribution centre.

Nabarro advised the joint venture on its purchase of the 50% stake in Meadowhall and their joint venture with British Land. The transaction involved extensive due diligence of the underlying assets and the securitisation.

Head of Indirect Investment at Nabarro, Amanda Howard, led the Nabarro team on the transaction, alongside real estate partner Simon Staite and tax partner Simon Rose. Jones Day advised British Land.

Amanda commented: "Acting on such a high profile transaction for the real estate industry, which is very likely to be the biggest real estate deal in the UK this year, has been exciting for the team. The deal drew together our specialists in indirect investment, real estate, banking, REITs, tax, planning, environment, intellectual property, employment and pensions. We are delighted to have represented our clients in this deal. We worked alongside the client to provide high quality business friendly advice ensuring that the deal ran smoothly and quickly."

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