Pru set to name Bluewater buyer

A SINGAPORE government fund is among the front-runners to pick up a 17.5% stake in the Bluewater shopping centre, when part-owner Prudential names a buyer for the holding tomorrow.

The Government of Singapore Investment Corporation (GIC) manages the city-state's massive foreign reserves, and its real estate arm has been expanding its overseas presence in recent years.

Last week, GIC was part of a consortium that bought 73 British hotels for £1bn.

Prudential owns 35% of Bluewater, but is offloading half of that holding - worth £660m - as it diversifies its malls portfolio away from Britain.

Prudential executives said this week they would name the purchaser tomorrow, adding that the winning bid had come from a non-British group.

US investment bank Morgan Stanley, which has an active property arm, has also been tipped as a possible candidate.

Bluewater is among the largest shopping centres in the country, with about 155,000 square metres of retail space.

The centre's other backers include British pension fund group Hermes, which has 10%, Australian property company Lend Lease which has 30%, and a group of institutional investors who together hold 25%.