British Land exchanged contracts to sell 12 superstores from its joint venture with Sainsbury's for £429m, representing a net initial yield of 5.0%, to Realty Income Corporation. The share of the proceeds would be £193.5m, representing a modest premium to September 2018 book value, the company said. The move comes as the company sought to carry out its long-term long-term strategy to build an increasingly mixed-use business focused on three core elements: campus focused London offices; a smaller, refocused retail business and residential, principally build to rent. 'As part of this, we expect Retail to comprise c.30-35% of the assets of our business, down from around half today,' the company said. Once the transaction completes, expected at the end of May, our superstores exposure would fall to 1.3% of our portfolio based on September 2018 valuations with 6 standalone stores remaining, the company added. Net proceeds to British Land were expected to be about £95m following the repayment of debt and associated break costs.
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