Dutch property investor Wereldhave may buy west London's Ealing Broadway mall, which is owned by Legal & General Property, for about 152.5 million pounds in as little as a week's time, two sources said.
The mall would be sold in the region of its asking price, one source close to the deal told Reuters. The price would reflect a 6.1 percent yield, a second source familiar with the matter said.
Wereldhave was reported to have staved off potential rivals such as Land Securities and ING Real Estate Investment Management, the latter acting on behalf of the Malaysian Employees Provident Fund.
The 275,000 sq ft shopping centre had attracted strong interest because, although not graded as prime, it is located within London's M25 orbital motorway, the source said.
The sale will be one of the biggest UK shopping centre deals in 2011. The sector has seen investors pare back their interest in riskier, secondary-grade assets as concerns over the euro zone debt crisis dampened appetite.
On Monday, Savills said UK mall deals may fall a billion pounds short of a previous forecast of 5 billion pounds, citing investor worries over the euro zone.
Knight Frank is marketing the scheme while Jones Lang LaSalle is advising Wereldhave. All parties declined to comment.
Some details of the deal were previously reported by Property Week.
(Reporting by Brenda Goh)