PROPERTY developer Berk-eley has sold part of its interests in the Gunwharf Quays development at Portsmouth Harbour, in an £80 million deal, and is to work alongside fellow developer Land Securities in running the waterfront shopping and leisure complex.

Berkeley has sold 50 per cent of the 500,000 sq ft complex to Land Securities, and the two have formed a partnership to own and run the complex.

Berkeley chief executive Tony Pidgley said: "I am delighted that we have formed a partnership with a company of the calibre of Land Securities, and I look forward to working with them to ensure the scheme lives up to its potential.''

Ian Henderson, chief executive of Land Securities, said the company had been keen to focus on substantial retail-led mixed-urban regeneration projects.

"Gunwharf fits all our criteria and offers us the opportunity to become involved in an exciting, new concept for the UK, as well as providing good returns for shareholders."

Worth in the region of £80 million the actual amount payable will depend on the turnover element of rents at the development, and will be paid in trances linked to based rents secured.

The development includes 171,000 sq ft of designer factory outlet shopping, 148,000 sq ft of leisure space, 85,400 sq ft of restaurants and bars and 35,000 sq ft of offices with parking spaces.

Next door, Berkeley is building 310 new homes and the development also has outline planning permission for further residential, office and hotel development.

Already 80 per cent of the scheme is under offer with retailers such as Gap, Levi Strauss and Benetton already committed to Gunwharf Quays.

The leisure and restaurant complex includes an 11-screen Warner Village cinema, 26-lane bowling complex, a comedy club and more than 20 bars or restaurants.

The scheme represents Berkeley's continuing shift from a traditional greenfield developer to a specialist in urban mixed-use and regeneration schemes.

Around 90 per cent of Berkeley's land holdings are now brownfield sites.

Roger Lewis, chairman, said the policy, first adopted by the company in 1989, benefited from the government's continued emphasis on more sustainable, mixed-use, schemes.