Commercial Finance Specialists

Commercial development firm Segro has completed its exit from the retail property sector, having sold its 50 per cent stake in two shopping centres.

Segro has washed its hands of its joint retail development investment venture with Tesco by selling its 50 per cent stake.

The commercial development firm has sold its half of the development to British Land for £26.9 million, based on a gross asset value estimated at £174 million.

Segro entered into the joint venture with the retail giant twenty years ago in 1989, relating to two shopping centres in Surrey Quays and Clifton Moor.

This is the last of the firm's investment interests in retail property to be divested - a process that the company began in earnest in 2004.

Commenting on the sale, Segro's UK managing director Ian Sutcliffe said: "We are pleased to have completed the sale of our 50 per cent stake in these two shopping centres to British Land.

"These shopping centres were developed a number of years ago and do not represent the current focus of our business."

Prospects for corporate commercial property sectors have been positive for 2010, with forecasts by estate agent Knight Frank suggesting that central London office rents will recover this year.