Property group British Land has lifted its holding in Hercules Unit Trust (HUT), a retail park property unit trust, by more than previously expected.

British Land said it has received its allocation of units in HUT and has agreed to buy £66.8m of units at £613 per unit, representing a price 3.8% below the latest estimate of net asset value.

Earlier in the week, the company had said it would purchase just £41m of units, the minimum amount to which it was entitled under a scheduled pre-emption process.

The acquisition, which British Land assured will be accretive to earnings, will increase its share in HUT to 57.2%, from the current level of 49.2%.

HUT had a portfolio of £1.5bn and contracted net rent of £86.5m at the end of 2013. The portfolio includes 17 retail parks across the UK including Glasgow Fort Shopping Park and 50% of Fort Kinnaird Shopping Park, Edinburgh.

Occupiers include the likes of Arcadia, Asda, Boots, Marks & Spencer, Next, Sports Direct and TK Maxx. British Land is the property adviser to HUT.

Following the transaction, HUT will be treated as a subsidiary and consolidated in British Land's accounts from March 31st.

BC

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