£635 million shopping centre deal sees the Pru dilute holdings
Capital Shopping Centres has paid£653 million for a 50 per cent stake in Manchester Arndale and The Mall at Cribbs Causeway in Bristol, in one of the UK's biggest shopping centre sales.

Prudential put the interests, held through a Jersey-registered property unit trust, up for sale because it wanted to reduce its exposure to retail property. However, it will retain the remaining 50 per cent in both schemes and continue to manage them on behalf of the new owners.

David Fischel, chief executive of Capital Shopping Centres' parent company Liberty International said: 'This transaction with Prudential enables them to meet their objective of achieving greater diversification in their real estate holdings while also meeting Liberty International's strategic objective of investing in prime UK regional shopping centres and increasing the scale and geographic spread of our activities.'

The Mall has a retail area of 750,000 sq ft (69,675 sq m), with 10,000 free parking spaces. Its 135 shops include John Lewis, Marks & Spencer, Next, Boots, Bhs, WHSmith and H&M.

Manchester Arndale will become the UK's biggest in-town shopping centre at 1.4 million sq ft (130,060 sq m) when the Northern extension, which is under construction, is completed. Anchors at the scheme include Boots, Next, Bhs, Littlewoods, Topshop, WHSmith, Argos, Dixons and New Look.