Land Securities poised to make major acquisition

The UK's largest property company, Land Securities, is poised to make its largest acquisition since the credit crunch began.

The firm is currently negotiating the purchase of the 420,000 sq ft Overgate shopping centre in Dundee, Scotland.

One of the Scotland's largest malls, Overgate will be sold at a yield of around 6.8 per cent and has a price tag of £140 million. The centre will be purchased from a group of investors led by Lend Lease, the Australian development company.

Land Securities had announced that it was looking to make purchases within the retail sector following predictions from its chief executive, Frances Salway, that there would be a 'wave of sales' in that area.

Another shopping centre to come onto the market is Drake Circus in Plymouth, which Land Securities is also considering bidding for. A number of other investment trusts are also said to have expressed an interest in the centre, which is a distressed sale.

The rising number of distressed commercial properties on the market is encouraging a wave of interest from developers and investment groups. However, Overgate in Dundee is not a distressed sale.

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