British Land has announced the purchase of its joint venture partner Tesco's 50% holding in the 300,000 sq ft Surrey Quays Shopping Centre for £48 million.

Following the purchase, British Land's ownership in the centre will be 100%. As part of the deal, Tesco has committed to a new long-term lease on its store and the petrol filling station, which account for a significant part of the centre’s income. This increases the weighted average lease length of the centre to 9.4 years.

Surrey Quays Shopping Centre in Canada Water, South East London is anchored by a 115,000 sq ft Tesco Extra with key retailers including Bhs, River Island, New Look, JD, Boots, Burton and Dorothy Perkins.

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British Land intends to progress plans in 2014 (subject to planning) for a £38 million upgrade of the shopping centre which will include a 100,000 sq ft extension, the extensive refurbishment of the existing centre along with improvements to public spaces and connections to Surrey Quays and Canada Water tube and bus stations.

Canada Water, which is in the Rotherhithe Peninsula and close to Canary Wharf, has been designated as one of London's major regeneration areas. British Land has long-term interest in the area through oits partnership with Southwark Council, investment in Surrey Quays Shopping Centre and ownership of the 14.6 acre Harmsworth Quays printing works site where it is planning a residential-led mixed use re-development.

Chris Grigg, Chief Executive of British Land, said: "British Land's scale, access to finance, extensive relationships and expertise in planning, asset management and deal execution put us in a strong position to continue to source attractive acquisitions and to deliver superior total returns for our shareholders."

(CD)