In a move that could send shockwaves through the UK real estate market, British Land, a prominent property developer, is reportedly in talks to offload a significant portion of its assets to US real estate behemoth Realty Income. The potential £300 million deal is said to include six London-based data centres and offices currently leased to Vodafone, along with three shopping centres.

Realty Income, led by former investment banker Sumit Roy, first made its mark in the UK market in 2019 with a joint ownership deal with British Land involving 12 Sainsbury’s supermarkets worth £429 million. Since then, the US company has aggressively expanded its UK portfolio, investing more than £2 billion in supermarkets, DIY stores, and over 30 retail parks.

The UK’s dense population and constraints on new retail development have made it an attractive long-term investment hotspot for Realty Income. A £100 million price tag was placed on British Land’s data centre and office portfolio last month, with bids expected this week. Realty is also eyeing the acquisition of Inverness Shopping Park, the Kingston Centre in Milton Keynes, and Serpentine Green in Peterborough from British Land.

British Land’s shares have plummeted by 22% this year, pressured by higher interest rates, the rise of flexible working, and the looming cost of adjusting to new building regulations. The company fell out of the FTSE 100 and into the FTSE 250 in June after a 21-year run in the UK’s blue-chip share index.

However, occupancy rates remain higher than some analysts expected in the immediate post-pandemic period, and new developments in Paddington and Canada Water, as well as the City’s Broadgate campus, are providing positive momentum.

Both British Land and Realty Income have declined to comment on the reports, leaving the market to speculate on the potential impact of this massive deal. If finalized, this transaction could signify a significant shift in the UK real estate landscape, marking a new era of foreign investment and strategic asset realignment.