Property investor Hammerson PLC (LON:HMSO) is selling a 50% stake in the Watermark development in Southampton to Singapore sovereign wealth fund GIC Private Ltd for £48.5mln.
The FTSE 100 group said the Watermark development is located adjacent to the Westquay shopping centre and comprises17,000 square metres of leisure and dining space.
GIC is Hammerson's joint venture partner for the Westquay centre.
Hammerson said the development, which opened earlier this month, brings the total retail and leisure space at Westquay to more than 1.0 million square foot.
When fully leased, it said the development – which is currently 95% let - should provide stabilised annual income £5.5mln.
The tenure of the Westquay joint venture between Hammerson and GIC has also been extended and Hammerson said it will receive a fee from the joint venture for the ongoing asset management of the combined centre.
The deal is set to complete before the end of December, the property firm added.
Hammerson CEO David Atkins said: “GIC is one of our key joint venture partners and we are pleased to take forward this relationship.”
Hammerson shares edged higher on the news, up 0.5p at 563.5p in early morning trading.