Norges Bank Investment Management has exchanged contracts to buy a further 50% stake in Sheffield-area Meadowhall Shopping Centre from British Land for £360 million.

The deal for the centre, with 1.4 million square feet of retail floor area, values it at about £734 million. Norway’s state-run pension fund manager, one of the world’s biggest investors, will own 100% of Meadowhall when the deal is completed.

“Despite being out of favour, we remain confident in the prime shopping centre sector, where rents and yields have rebased significantly,” said Norge’s Head of UK Real Estate, Jayesh Patel.

British Land said proceeds, after net debt of about £200 million, are expected to total £156 million.

It said dilution to full-year 2025 earnings would be about 6p per share, prior to reinvestment. As part of the transaction, British Land will remain as asset manager of Meadowhall shopping centre, for which it will continue to earn fees in line with current terms.

British Land CEO Simon Carter said: “Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and London urban logistics.

“We will continue to grow our retail park portfolio; with low capex requirements parks offer attractive cash returns and at 99% occupancy we are delivering strong rental growth.”

The agreement was signed on May 18, with completion expected on 12 July.