British Land today sold a 50% stake in its Meadowhall shopping centre near Sheffield to Raymond Mould and Patrick Vaughan’s joint venture company.

British Land said in a statement this afternoon that the unconditional contracts were exchanged to form a 50:50 joint venture partnership with London & Stamford Property and its joint venture partner.

London & Stamford Property with Abu Dhabi company Cavendish has bought a 50% stake for £587.7m reflecting a net initial yield of 6.75%.

The transaction will complete on Wednesday this week.

British Land will be property managers at Meadowhall and will act jointly with London & Stamford as strategic advisors for the joint venture company.

The jv will also own nearby properties, including a Premier Inn Hotel, TGI restaurant, two petrol stations and the Meadowhall distribution centre.

The purchase price will comprise a cash consideration of £170m and values Meadowhall at £1.175bn.

The joint venture will keep Meadowhall's £835m of outstanding securitised third party debt at an average interest rate of 4.98%.

The 74 acre surrounding development land, along with other ancillary sites, will remain wholly in British Land ownership.

Andrew Jones, executive director and head of retail, British Land, said: 'This transaction reduces our exposure to our largest retail asset whilst allowing us to retain a substantial share in the future upside from long and strong cashflows.

'Meadowhall is truly a unique asset with enduring occupier appeal and in which we see great value. We look forward to delivering further value with our partners in the next few years.'

Raymond Mould, non-executive chairman of London & Stamford Property, said: 'Opportunities to invest in such an asset are very rare and this transaction represents an outstanding acquisition for us and our partner.'