Law Firms

SJ Berwin

Dentons in for Sainsbury's £1bn British Land JV

Author: Charlotte Edmond

Published: 28/03/2008 16:08

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Denton Wilde Sapte and SJ Berwin have won lead roles advising supermarket giant Sainsbury’s on a £1.2bn property joint venture with British Land.

Dentons saw off a host of panel advisers to win the lead role for Sainsbury’s, fielding a team under property partner Andrew Bedford and corporate partners Richard Macklin and Matthew Tinger. The joint venture is part of the store’s attempts to unlock value from its sizeable real estate portfolio.

Rival City outfit SJ Berwin, meanwhile, was instructed to advise longstanding client British Land, with corporate partner Michael Goldberg leading a team that also included real estate partners Helen Willett and Jeff Smith.

Simmons & Simmons advised British Land on the securitisation of the property portfolio, with Allen & Overy also involved for the trustees of the securitisation.

Commenting on the deal, Dentons' Tinger said: "This is great deal for both parties. Sainsbury’s gains some control over their leased portfolio, British Land unlocks significant value and both will benefit from the opportunity to develop the sites to their full potential .”

The deal sees Sainsbury’s invest £273m to create the 50:50 agreement with British Land. The venture, which holds 39 stores with a combined value of around £1.2bn, will allow the supermarket giant to take on development opportunities for the stores, with 25 sites earmarked for significant extensions.

It is the second such agreement Sainsbury's has formed in recent months, having last November launched a joint venture with Land Securities covering three properties worth £113m.

Dentons - which features alongside the likes of Addleshaw Goddard, Bond Pearce, Shepherd & Wedderburn and CMS Cameron McKenna on Sainsbury's property panel - was also instructed last year when Sainsbury's moved its headquarters from Holborn to Kings Cross.

The group has come under pressure to release the value of its real estate since it was subject to two failed bids last year by private equity house CVC and Qatari investment group Delta Two. Linklaters advised Sainbury’s on both those bids.

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