British Land has strengthened its retail portfolio with a £441m acquisition of seven UK retail parks.
- This significant purchase adds 1.9 million sq ft of retail space to British Land’s holdings.
- The transaction was financed through a mix of equity, existing cash, and borrowing facilities.
- This expansion increases retail parks’ share of British Land’s portfolio from 22% to 32%.
- Chief Executive Simon Carter highlighted the business’s ongoing success and strategic focus on retail parks.
British Land, a prominent property investment firm, has strategically enhanced its retail portfolio by acquiring seven UK retail parks for a total of £441 million. This acquisition from Canadian investor Brookfield encompasses a substantial area of 1.9 million square feet, significantly bolstering British Land’s presence in the retail sector.
The newly acquired portfolio comprises major retail parks including Central Retail Park in Falkirk, Cleveland Retail Park in Middlesbrough, Ravenhead Retail Park in St Helens, Elliott’s Field Shopping Park in Rugby, Telford Forge Shopping Park in Telford, Wellington Retail Park in Waterlooville, and Chilwell Retail Park in Nottingham. Notably, six of these parks are anchored by Marks & Spencer, with Telford Forge Shopping Park being anchored by Sainsbury’s.
This acquisition was partly financed by an equity placing of £300 million, with the remaining funds sourced from existing cash reserves and borrowing facilities. Subsequently, retail parks now constitute 32% of British Land’s entire portfolio, an increase from 22% over the past eighteen months.
In conjunction with this acquisition, British Land announced its trading update for the six-month period ending 30 September 2024, affirming the earnings per share (EPS) guidance for the financial year 2025 at 27.9 pence. Simon Carter, Chief Executive, remarked on the quality of the acquired portfolio, emphasising the continued preference of retailers for retail park formats.
Carter stated, “The acquisition of this high-quality portfolio builds upon our market leading position in retail parks. Parks remain the preferred format for retailers and we have deployed £711 million of capital into this subsector since 1 April 2024.” He further mentioned the positive trading performance and the expectation of marginally increased portfolio values with sustained growth in estimated rental value (ERV) across the portfolio.
This strategic acquisition marks a significant step forward in British Land’s focus on enhancing its retail park assets.
