Catalyst Clinches JSD Sale

LONDON-The on-off sale of Sainsbury’s development arm has reached a conclusion with the £168 million ($285 million) sale of J Sainsbury Developments to a new indirect property vehicle set up by Catalyst Capital.

Catalyst will inject the portfolio of 16 developments into an new vehicle called the Blue Investment Fund, which is a joint venture between Schroders’ Gresham Property Partners LP and Deutsche UK Property Venture Fund No. 2.

The 16 projects range from out-of-town retail to in-town mixed-use developments, throughout the UK. They are mostly unrelated to Sainsbury’s store development programme. Significantly, Sainsbury’s withdrew five sites–worth £25 million ($42 million)–from the sale and will retain them within its own portfolio for future development or for separate sales.

Sainsbury’s property director Desmond Taljaard said: “Going forward we will concentrate our property development activities on core supermarket developments. JSD no longer fits strategically with the business as it has emphasised delivering schemes which primarily do not relate to our supermarkets.’