British Land acquires seven retail parks for 441 million pounds

Real estate company British Land has snapped up seven retail parks from their former owner Brookfield for a total of 441 million pounds. The move builds on the firm’s “market leading position in retail parks”, CEO Simon Carter said, before adding that “parks remained the preferred format for retailers”.

The portfolio spans 1.9 million square feet and boasts an occupancy rate of 99 percent, according to British Land. The acquired lots have been revealed to be Elliott’s Field Shopping Park, Rugby; Central Retail Park, Falkirk; Wellington Retail Park, Waterlooville; Ravenhead Retail Park, St Helens; Cleveland Retail Park, Middlesbrough; Telford Forge Shopping Park, Telford; and Chilwell Retail Park, Nottingham.

British Land also announced a proposed equity placing of approximately 300 million pounds to fund the acquisition, with the remainder of the consideration financed from existing cash and in place facilities. The assets themselves have a passing rent of 29.5 million pounds and a topped up passing rent of 31.9 million pounds.

The news falls alongside the publication of British Land’s six month report for the period ended 30 September 2024, in which it expects underlying profits of 142 to 144 million pounds. According to Carter, the newly acquired parks will be “immediately earnings accredited and are expected to deliver double digit ungeared IRRs”.

He continued: “The broader business also continues to trade well with a good level of leasing in the period and cost discipline underpinning our profit performance. We expect portfolio values to be marginally up for the half year, with continued ERV growth across the portfolio.”