Landsec to buy property rival U+I for £190m
Property giant Landsec has announced it will buy the property regeneration firm U+I for £190m.
Mark Allan, chief executive officer of Landsec, said the acquisition would mean a bolstered focus on developing “world-class mixed-use communities that inspire and create opportunity.”
The 149-pence-per-share offer for U+I represented a premium of 73.3 per cent to the stock’s Friday closing price.
U+I shares surged some 73 per cent on Monday morning to 148.5 pence, just below the offer price.
Landsec shares saw a minimal boost on early trade.
U+I has a number of mixed-use development schemes in the works. Projects include the Mayfield site in Manchester city centre, which comprises of 2m sqt ft of offive, retail and leisure space and 1,500 new homes.
U+I has also achieved a resolution to grant planning consent for 1,500 new homes, 200,000 sq ft of warehouses and 50,000 sq ft of retail space across the Greenwich Peninsula.
Landsec said it hopes to accelerate the pace of development across these sites, which it said will enable it to invest a further £600-800 million in development capital expenditure in the short to medium term.
Allan added: “Landsec has tremendous potential and this transaction is an example of our ability to capitalise on our strengths and create future value for all of our stakeholders – investors, employees, communities and partners alike.”