ZARAGOZA, SPAIN-British Land has unveiled plans to build a 2.1-million-sf shopping mall-leisure complex here. The finished development will have a total value of euro 500 million ($642.64 million).

Britain's second largest property company has formed a 50/50 joint venture with a group of private European investors and Spanish construction company Copcisa Corp. for the project. The retail-leisure park, to be known as Puerto Venecia, will be one of the largest projects of its kind under way in Europe. It is scheduled to open in late 2007. Anchor tenants include IKEA, Leroy Merlin, Conforama, Decathlon, Boulanger and Porcelanosa.

"This is our first major exposure to euro-zone retail development outside of the expanding PREF retail park fund," says Valentine Beresford, director of British Land European fund management. "It is directly in line with our strategy to expand in Europe in out-of-town retail and builds on our existing UK/Europe expertise."

British Land already has one of the largest retail portfolios in Britain. Just under 60% of its total £18 billion real estate portfolio is retail and it includes the regional shopping mall Meadowhall in Sheffield.

At the same time that British Land announced it was developing in Spain, the company also announced that the board had taken "a decision in principle" to convert to REIT status "early in 2007." Analysts speculate that British Land might form two REITs, one for retail and one for office.