The recommended cash offer is a 73% premium to U+I’s share price and will give the big London office developer a significant new pipeline of mixed-use regeneration schemes in London and Manchester.

Landsec said the acquisition, which will be made through a newly-formed subsidiary LS Development,  will see value from combining U+I’s front-end development capabilities, and portfolio of regeneration projects that need funding, with Landsec’s development expertise and strong balance sheet.

The London property giant said it would now speed-up the development of three of U+I key sites.

Enabling works are well advanced on the first phase of the £1.4bn Mayfield development in Manchester

These include the large Manchester Mayfield scheme, where work has already started on site. Ultimately, this will provide 2m sq ft of office, retail and leisure space and 1,500 new homes set around a 6.5 acre public park.

Landsec will also bring forward Morden Wharf on Greenwich Peninsular, which has resolution for planning consent for 1,500 homes, 250,000sq ft of warehouses and retail.

Also in London, U+I is planning to deliver Landmark Court a joint venture with Transport for London in Southwak for a 200,000 sq ft ofice and retail complex.

Mark Allan, Chief Executive Officer of Landsec, said: “Developing truly world-class mixed-use communities that inspire and create opportunity is more important than ever.

“The combination of Landsec and U+I is compelling and will help us accelerate our strategy, both by introducing exciting new Urban development opportunities and by further strengthening Landsec’s front-end development capabilities and placemaking skills.

“Landsec has tremendous potential and this transaction is an example of our ability to capitalise on our strengths and create future value for all of our stakeholders – investors, employees, communities and partners alike.”

Richard Upton, Chief Executive Officer of U+I, said: “This acquisition represents a compelling opportunity to bring together two companies with strong and clear complementary value systems.

“U+I’s core portfolio of large, mixed-use regeneration schemes can now achieve its full potential with the capital, experience and market positioning that Landsec can provide.”

The deal is expected to complete by December or in early 2022.