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British Land Reports Portfolio Value Down by 10.8%

British Land Reports Portfolio Value Down by 10.8%
07 June 2021
 

British Land has reported its full-year results for 2021, revealing a 10.8 per cent reduction in portfolio value.

Office real estate value is down 3.8 per cent, and retail down 24.7 per cent, due to COVID-19 and the accompanying closures and restrictions.

The FTSE-100 real estate investment company sold £1.2bn of assets in 2021's financial year, which is 6.2 per cent ahead of book value. They also completed their first net-zero development at 100 Liverpool Street, made their first logistics acquisition in north London and acquired £197m of retail parks.

Simon Carter, CEO at British Land, said: “This has been an extraordinary year so I am enormously proud of the resilient performance the team delivered, and the strong progress we have made across the priority areas I set out in November."

 

Delivering Urban Logistics 

 

Carter continued: "Our London campuses are already a successful differentiator for us, benefitting from increasing customer focus on the best space, where supply is most constrained. In Retail, we are expanding our approach to include fulfilment, building on our market-leading position in high quality, out of town retail parks which already play a key role in retailers’ fulfilment models, and complementing this with development led investment in urban logistics, primarily in London.

"We see a value opportunity in retail parks, reflecting increased yields and a more stable occupational outlook. We have been further encouraged by how strongly footfall and sales have rebounded in recent weeks. In urban logistics, our experience delivering complex developments in Central London means we are well placed to deliver innovative solutions to meet the accelerating occupational demand."

British Land completed its first urban logistics acquisition in 2021: a 216,000 sq ft warehouse in Enfield with development potential, acquired for £87 million.

 

Image

 

Key Report Highlights

 

  • 83 per cent of 2021's rent was collected
  • £556 million of retail assets have been sold since April 2020, 7.0 per cent ahead of book value
  • £643 million of standalone offices sold, 5.2 per cent ahead of book value
  • Commenced enabling works for the first phase of Canada Water masterplan 
  • Pledged a commitment to developing 882,000 sq ft across 1 Broadgate and Norton Folgate

 

Picture: an artist's impression of 1 Broadgate​. Image Credit: British Land

Article written by Ella Tansley | Published 07 June 2021

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