The quoted company is to acquire Berkeley Group's 50% share in the retail and leisure element of their 33-acre joint venture in Portsmouth. The Quays comprises 243,000 sq ft of designer factory outlets, 130,000 sq ft of leisure, 117,000 sq ft of bars and restaurants, 26,000 sq ft offices and a 130 bedroom Holiday Inn Express hotel.

The first installment will be paid by April but the final amount will depend on rental performance.

The scheme overlooks the Harbour and is let to 91 retailers. The leisure element includes an 11-screen Warner Village Cinema, a 26-lane bowling complex operated by Bowlplex and a casino operated by Grosvenor. Berkeley has also built 233 homes on the site and has another 131 under construction.

Berkeley now plans to focus on the regeneration and development of the next phases of Gunwharf Quays. This includes 400 homes, 25% will be offered to the local NHS Trust.Tony Pidgley, Berkeley managing director, said: "This is a fantastic project for Berkeley to be involved with. We've broken new ground in so many respects and it is wonderful that Gunwharf has been recognised as an exemplar in its field." He added: "Our partnership with Land Securities has been a great experience for Berkeley and we have learned an immense amount from this link."