Land Securities to buy U+I Group in £190m deal

Land Securities has agreed to buy property regeneration company U&I Group in a £190m deal.

Under the terms of the acquisition, U&I shareholders will receive 149p in cash for each of their shares, which is an 86% premium to the closing share price on Friday.

Landsec said on Monday that U+I provides access to a significant pipeline of mixed-use development schemes, of which two are well-progressed through planning - Mayfield, Manchester and Morden Wharf, Greenwich Peninsula - and in respect of which it believes that it can accelerate the pace of development.

Landsec chief executive Mark Allan said: "Developing truly world-class mixed-use communities that inspire and create opportunity is more important than ever. The combination of Landsec and U+I is compelling and will help us accelerate our strategy, both by introducing exciting new urban development opportunities and by further strengthening Landsec's front end development capabilities and placemaking skills.

"Landsec has tremendous potential and this transaction is an example of our ability to capitalise on our strengths and create future value for all of our stakeholders - investors, employees, communities and partners alike."

U+I shares surged on the news and by 0925 GMT, they were trading up 72% at 148.01p.