Land Securities to increase its stake in leisure group

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LAND Securities, the company behind the £350m Trinity Leeds retail and leisure development, is to buy a 42 per cent stake in X-Leisure, which runs the X-scape indoor ski slope in Castleford.

Land Securities will pay seller Capital & Regional £110.6m for the stake, which brings its shareholding in X-Leisure to 54 per cent. The deal is subject to shareholder approval.

X-Leisure owns schemes across the UK, including X-scape in Milton Keynes and Brighton Marina.

X-scape offers a wide range of day and night family entertainment including movies, real snow slopes, bowling, shopping, bars, restaurants and extreme activities.

It runs three real indoor snow slopes in Castleford, Milton Keynes and Braehead and employs over 400 staff.

Land Securities’ executive director Richard Akers said: “Leisure continues to be a growing element of our portfolio both organically and through acquisition.

“This transaction will further increase our reach and expertise in the sector.

“While we believe that the offer represents a good deal for all involved, it is subject to unit-holder and Capital & Regional shareholder approvals so we can have no certainty that the purchase will go ahead.”

Land Securities will pay £1m for the acquisition of the property management company.

X-Leisure has 16 schemes, covering 3.1 million sq ft of prime leisure and entertainment space.

Land Securities said that leisure is an increasingly important part of its retail portfolio and this transaction will give it a significant stake in a group of prime leisure assets.

The group’s one million sq ft Trinity Leeds development is now 84 per cent let after signing up a number of new tenants including upmarket lingerie retailer Victoria’s Secret.