British Land Co PLC GBP401m of West End offices sales
RNS Number : 6006J
British Land Co PLC
23 December 2020
British Land agrees GBP401m of West End offices sales
23 December 2020
British Land is pleased to announce it has exchanged upon the
sale of a 75% interest in a portfolio of three buildings in the
West End to Allianz Real Estate, acting on behalf of several
Allianz Group companies, for GBP401m. The transaction represents a
blended net initial yield of 4.32%, a premium to September book
value and is expected to complete in January.
This transaction demonstrates our commitment to recycle capital
out of assets not aligned to our core focus on mixed use London
campuses, providing greater flexibility to invest in developments,
including Norton Folgate, which we committed to in November and
Canada Water, where we have planning permission for our 53 acre
It is an excellent example of the progress we are already making
against the priorities set out in our recent results. The sale
brings total asset disposals to date in FY21 to GBP1.1bn.
Simon Carter, Chief Executive, British Land, said: "Having
delivered outstanding office space and attracted high quality
occupiers, we are thrilled to have secured Allianz Real Estate as
our partner and crystallised significant value for shareholders.
This transaction demonstrates that like us, investors remain
confident in the long term prospects for high quality assets in
prime London locations."
Kari Pitkin, Head of Business Development for Europe at Allianz
Real Estate, said: "We are delighted to be working with such a
respected partner in British Land. This transaction represents a
great opportunity to invest in prime assets in a global city on
behalf of our Allianz clients thereby broadening our UK investment
British Land will form a new joint venture with Allianz, with
British Land's interest at 25% and Allianz's at 75%. British Land
will continue to manage all three buildings and will receive an
asset management fee. This demonstrates the appetite of high
quality institutions to partner with us to access our best in class
platform and assets.
The portfolio includes three buildings, 10 Portman Square,
Marble Arch House and York House, all of which are in Marylebone.
10 Portman Square comprises 134,000 sq ft of high quality,
multi-let office space on Portman Square. Marble Arch House is a
76,000 sq ft office-led building close to Marble Arch station and
opposite York House, which is 100,000 sq ft of primarily office
space with 22 residential apartments. The office tenants at York
House include British Land and we have signed a new ten year lease
on our space.
The assets had a combined valuation of GBP508m (at 100%) at 30
September and the total net rent attributable is GBP21.1m. Prior to
any reinvestment the transaction will reduce underlying earnings
per share by around 1.4p and LTV by 2.7%.
Investors & Analysts: David Walker 07753 928 382
Media: Charlotte Whitley 07887 802 535
Notes to Editors
About British Land
Our portfolio of high quality UK commercial property is focused
on London Offices and Retail around the UK. We own or manage a
portfolio valued at GBP13.7bn (British Land share: GBP10.3bn) as at
30 September 2020 making us one of Europe's largest listed real
estate investment companies.
Our strategy is to provide places which meet the needs of our
customers and respond to changing lifestyles - Places People
Prefer. We do this by creating great environments both inside and
outside our buildings and use our scale and placemaking skills to
enhance and enliven them. This expands their appeal to a broader
range of occupiers, creating enduring demand and driving
sustainable, long term performance.
Our Offices portfolio comprises three office-led campuses in
central London as well as high quality standalone buildings and
accounts for 65% of our portfolio. Our Retail portfolio is focused
on retail parks and shopping centres, and accounts for 31% of our
portfolio. Increasingly our focus is on providing a mix of uses and
this is most evident at Canada Water, our 53 acre redevelopment
opportunity where we have plans to create a new neighbourhood for
Sustainability is embedded throughout our business. Our places,
which are designed to meet high sustainability standards, become
part of local communities, provide opportunities for skills
development and employment and promote wellbeing. In April 2016
British Land received the Queen's Award for Enterprise: Sustainable
Development, the UK's highest accolade for business success for
economic, social and environmental achievements over a period of
Further details can be found on the British Land website at
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(END) Dow Jones Newswires
December 23, 2020 02:00 ET (07:00 GMT)