Landsec secures 100% ownership of St David’s Cardiff

Bore da (Welsh for 'good morning') was likely shouted this morning at the Landsec office. Following its purchase of the debt secured against the 50% share previously owned by Intu, Landsec has now secured 100% ownership of St David’s shopping centre in Cardiff.

Leasing momentum in St David’s has reportedly been strong, as the centre benefits from brands’ ongoing “flight to prime” plans. Since March 2022, 36 leases have been signed or are in solicitors hands.

In the last 18 months, several brands have relocated to St David’s from elsewhere in the city, agreed to open new stores, or upsized their existing stores, including Zara, Ivy Asia, Gaucho, Footasylum and The Fragrance Shop.

Via a separate deal, Landsec has also acquired the adjacent vacant Debenhams store for a minimal sum.

All combined, Landsec has said this "unlocks the opportunity" to deliver its future vision for the centre, further enhancing its attraction for brands and guests. Future plans will introduce new public spaces, elevated F&B/leisure concepts and a refreshed brand mix.

Comprising of separate transactions with two debt holders, the overall purchase price represents a discount on the £113 million value quoted in September 2022.

Intu, the previous owners of the shopping centre, entered into administration in June 2020. The company owned or part-owned 17 shopping centres in the UK and one in Spain prior to entering administration.

Bruce Findlay, Managing Director, Retail at Landsec said: “Acquiring this final stake in St David’s is testament to our ability to unlock complex opportunities and enables us to take forward our placemaking plans for what is the dominant retail destination in Wales. With annual footfall of 27 million, it also has the necessary attributes of what we see as a shopping centre of the future.

“Last quarter, we saw many household name brands make a move to prime city-centre locations like St David’s with a focus on creating best-in-class guest experiences. Our investment here will position us perfectly to capitalise on this trend, driving increased footfall and spend – while also helping to shape an exciting future for Cardiff’s city centre.

“It’s clear that the flight to prime isn’t slowing and we’re investing at a time where values are at a level that makes this transaction very attractive.”