The deal is expected to net the company A$480m (around £265m). The proceeds from the sale will go to pay down debts and fund investments in development projects in Elephant and Castle and Stratford.
The sale will not be Land Lease's only such transaction in the UK as it looks to restructure its investments. According to the Financial Times the company will also be selling its Crosby apartment portfolio and leave a private finance initiative in Lancashire.
Bluewater is one of the largest shopping centres in the country, housing more than 330 retailers, cafes, bars and restaurants.
Land Securities will own 25 per cent of the asset, M&G Real Estate and GIC 35 per cent and Hermes and Aberdeen Asset Management will control 10 per cent.