The sale is conditional on the approval of shareholders of UK Land plc. The Elephant and Castle Centre is the Company's principal property asset so the sale could sound the death knell of the company. UK Land Directors are poised to announce plans for the company. A circular relating to the disposal of the centre will be despatched to shareholders in due course seeking, as an ordinary resolution, their approval for the disposal in general meeting.

The centre consists of 90,000 sf of office space, 140,000 sf of retail space and 90,000 sf of leisure space situated on a 3.5-acre freehold site in South-East London. Net initial yield is 7.8%.

Anthony Glossop, deputy chairman and chief executive of St Modwen, commented: 'This will bring the number of shopping centres that we hold either outright or through joint ventures to 14 of which six are in the Greater London area. All have been acquired with a view to their long-term regeneration either by refurbishment or redevelopment, whilst improving performance in the short-term, through a programme of active 'hands-on' management.'