Jan 6 - British Land, the second-biggest UK landlord by market value, said on Thursday it has bought a mall in Plymouth, southern England, for 240 million pounds ($372 million) to add to its growing UK retail portfolio.

Entrance to Drake Circus shopping centre in Plymouth

The 425,000 square feet Drake Circus shopping centre was bought at a net initial yield of 6 percent, with the potential for income growth through asset management, the real estate investment trust said in a statement.

"We see significant potential to add value at Drake Circus over the coming years by leveraging our extensive asset management skills and retailer relationships," British Land chief executive Chris Grigg said.

Located in the middle of Plymouth city, the mall has a catchment area covering Devon and Cornwall and an annual footfall of nearly 19 million people, and is anchored by tenants including Primark, Marks & Spencer and Next.

Real estate investors have been showing new interest in UK malls, which they expect have hit a bottom in capital values and rents, and are set to rise as the British economy stages a tentative recovery.

(Reporting by Daryl Loo; editing by Laurence Fletcher)