Last updated 22nd June 2022
British Land plc
British Land is one of the UK’s largest property groups and one of Europe’s largest Real Estate Investment Trusts. The group has assets under management worth £13.3 billion (of which it owns £9.8 billion) covering some 21.6 million sq ft of floor space. It has an annual rent roll of £448 million.
The group has a £6.97 billion office portfolio – chiefly on its campuses at Broadgate, Regent”s Place and Paddington Central – and including multi-let retail centres around the UK. It is part-owner (in a 50:50 jv with Blackrock International) of Broadgate, the 4 million sq ft estate which is arguably the City’s premier office campus. It is also the joint owner of Meadowhall, the giant out-of-town retail centre near Sheffield.
Overall, the group”s £10.47 billion UK portfolio is dominated by office-led campuses worth £6.97 bn; retail & fulfilment (£3.5 billion); retail parks (£2.11 billion), shopping centres (£800 million) and urban logistics (£319 million). Today, virtually all of BL”s portfolio is let on long leases and it has 95.5% occupancy.
British Land acts as an ‘active recycler’ of capital having released over £1bn since April 2021 to invest in new opportunities, notably in its London campuses, including Canada Water and in urban logistics. In 2021, it had development spending of £208 million. Major London schemes where British Land is currently on site include Norton Folgate, a 336,000 sq ft mixed-use scheme near Liverpool St station and 1 Broadgate where it is developing 544,000 sq ft of office space.
British Land has a significant development programme going forward; as at May 2022 it had a committed development pipeline covering 11.35 million sq ft with a cost to completion of £1.61 billion. Meanwhile, it is developing an urban logistics business in London with a pipeline with a gross development value worth some £1.3bn.
In May 2020, British Land chief executive Simon Carter said: “We are mindful of current elevated economic and geo-political uncertainties, but our strategic advantage in sectors with pricing power means we can look ahead with confidence.”
Financials
To view the financials for British Land, visit Companies House and use Company ID 00621920
Results from British Land for the year end-March 2022 reflect the recovery the group saw as the economy re-opened post-Covid. Underlying profit rose by 25% to £251 million, up from £201 million previously and the group”s net assets per share rose to 727p from 648p. Overall, the value of the group”s portfolio rose by 6.8% to £10.47 billion. Meanwhile, the group”s balance sheet remains in good shape with a loan to value ratio of 32.9%.
Development Pipeline
British Land’s has a committed pipeline of some 1.7m sq ft of space centred on Canada Water, in Docklands where it is on site at the first three buildings involving 585,000 sq ft. It also includes Phase 2 at Aldgate Place, the group”s first build to rent housing scheme involving 159 flats with office and retail space and The Priestley Centre in Guildford where BL is on site with an 81,000 sq ft office and lab development.
Meanwhile, the group has a near-term pipeline of some 1.9m sq ft and which includes 2 Finsbury Avenue in the City, where it has planning for a 718,000 sq ft office scheme and where the group expects to start on site later in 2022. It also has consent for a 438,000 sq ft office scheme at 5 Kingdom Street, where work is set to start late in 2023.
Meanwhile, at Meadowhall in Sheffield, the group has outline planning permission for a 604,000 sq ft logistics scheme which it is set to take forward later in 2022.
British Land also has a medium term development pipeline of some 7.8 million sq ft which includes further phases at Canada Water involving 4.5m sq ft of space. It also has an opportunity at Euston Tower for a 578,000 sq ft redevelopment for innovative and life sciences businesses where it plans to submit planning next year.
The group also has 2.3 m sq ft of urban logistics opportunities including 559,000 sq ft of logistics space at Thurrock Shopping Park and schemes at Hannah Close in Wembley (668,000 sq ft) and Heritage House in Enfield (431,000 sq ft). The group is also looking at urban logistics schemes in central London at Finsbury Square and Verney Road in Southwark together totalling 213,000 sq ft. Land close to a retail park in Teesside could also be redeveloped for logistics.
Glenigan
As well as major developments in London and the South East, Glenigan data shows that British Land is also involved in more modestly sized projects around the country. It has recently submitted detailed plans for a £4.3 million extension at Teeside Shopping Park in Stockton on a near-2,500 sq m project where work is set to start in late 2022 and continue for six months (Project ID: 22165980). Meanwhile, in Hereford, the group has submitted plans for a £15.99 million conversion of a former Debenhams store into offices on a project where work could start in spring 2023 (Project ID: 22196562).
Conclusion: A significant player taking advantage of long-term property trends
British Land is a significant player in the UK commercial property market, using its capital to deliver long-term property returns across the cycle. Today, the group is focused on its London office campuses and mixed use developments – notably at its huge Canada Water scheme – with a smaller exposure to the retail sector, which reflects the tough times in the sector. The group is also taking advantage of trends in the retail sector by developing sites around its shopping centres for logistics space. With a total development pipeline of 11.35 million sq ft, the group is set to remain a significant force on the national development scene.
How to win work with British Land
British Land puts an emphasis on collaborative ways of working and recently launched its Supplier Excellence Awards in 2022. Full details on its approach to its supply chain can be seen at a supplier section on the group’s website here.
Contacts:
Tim Downes, Development Director
Tel 020 7467 2800
Email tim.downes@britishland.com
Nigel Webb, Head of Developments
Tel: 0207 467 3496
Email nigel.webb@britishland.com