Norway's sovereign wealth fund acquires full control of Meadowhall shopping centre from British Land for £360m

British Land sold its 50% share in Meadowhall shopping centre in Sheffield to Norway's sovereign wealth fund for £360 million. This ended British Land's ownership of the site after 25 years. The shopping centre is the largest in Yorkshire. Norges Bank Investment Management now owns the entire shopping centre. They initially invested in 2012 and already owned 50% of it. Meadowhall was built in 1990 on the site of the former East Hecla steelworks. It symbolizes the UK's transition from heavy industry to a service-based economy. When Meadowhall opened, it was the UK's second-largest shopping centre. Over the years, visitor numbers increased from 20 million in the first year to 30 million by 2019. However, the rise of online shopping has put pressure on shopping centres. The deal valued Meadowhall at £734 million, much lower than the £1.07 billion British Land paid in 1999 to acquire it. By 2019, Meadowhall had 290 stores and 50 restaurants across 139,355 square meters of retail space. The COVID-19 pandemic highlighted the challenges faced by shopping centres. British Land decided to sell its stake in Meadowhall as part of its strategy to focus on retail parks, campuses, and London urban logistics. The sale is expected to be completed in July. British Land will continue to manage the shopping centre after the sale. Simon Carter, the CEO of British Land, expressed satisfaction with the partnership with Norges Bank and the shift in focus for the company's portfolio. In addition to Meadowhall, British Land has made other strategic moves, such as selling part of its stake in the Euston office building. The company reported a loss in the six months leading to September due to various factors affecting property values. Despite challenges, British Land remains committed to managing its portfolio effectively.