LONDON-London-based Prudential has sold half of its holding in the UK's biggest shopping centre, Bluewater, to the Singapore government for euro 457 million ($595 million).

GIC Real Estate Ltd., the real estate investment arm of the Singapore government, is buying for 17.5% of Bluewater, half of Prudential's 35% stake. "We are pleased to have entered into this transaction with Prudential," says Seek Ngee Huat, president of GIC RE. "It enables us to invest in one of the largest and most innovative regional shopping centers in Europe and work alongside an established and leading investor."

The sale of Bluewater in Kent is the third sale of a UK shopping center investment by Prudential in the last two weeks. The insurer has reduced its exposure to the sector to euro 2.9 billion ($3.7 billion) from euro 4.3 billion ($5.6 billion) prior to the three sales.

Last week Prudential sold half its investments in the Mall at Cribbs Causeway in Bristol and the Manchester Arndale Shopping Center to Liberty International. "We had £3 billion in shopping centers two weeks ago, we've now got £2 billion," says Chris Taylor, director of the Prudential's property division, Prudential Property Investment Managers Ltd.

Prudential has now put its UK property portfolio into better shape says Talyor. The fund plans to sell up to 15% of its total UK property portfolio--valued at nearly euro 20 billion ($26 billion)--and plans to reinvest the proceeds into non-UK property assets.

Despite this strategic plan, Prudential says it retains the option to increase its stake in Bluewater to 36.5% should the other major investor, Lend Lease Europe Ltd, decide to sell a portion of its holding.