Woolwich Estate in south east London joins the portfolio of British Land’s Local retail centres

LONDON, 2018-Feb-13 — /EPR Retail News/ — British Land is pleased to announce that it has acquired the Woolwich Estate, covering 4.9 acres in south east London for a headline price £103 million representing a net initial yield of 4.1%.

This acquisition is in line with our strategy of focusing on well-connected, mixed use assets which meet the evolving needs of our occupiers and their customers. It builds on our portfolio of places benefitting from the Elizabeth Line, including Broadgate, Paddington Central and Ealing Broadway, and provides significant potential to drive growth and returns through our placemaking, asset management and development expertise. It makes an exciting addition to our existing portfolio of Local retail centres, which provide convenience-led shopping for local communities.

The Woolwich estate covers 360,000 sq ft of space in central Woolwich. Predominantly retail, it includes over 50,000 sq ft of residential and 3,000 sq ft of office space. The area is already benefitting from significant regeneration, led by the Elizabeth Line which launches from Woolwich in December 2018 reducing journey times to Canary Wharf and Bond Street to 8 and 22 minutes respectively. To coincide with this, 6,000 new homes have been built or are in the pipeline. The estate is currently 95% occupied, with an average lease length of under four years, and average rent of £17 psf, providing British Land with an attractive opportunity to strengthen the offer and mix in line with the improving catchment.

Charles Maudsley, Head of Retail, Leisure & Residential at British Land, said: “This acquisition provides a unique opportunity to create a thriving retail-anchored centre, benefitting from a mix of uses in an exciting, increasingly well connected and rapidly regenerating part of London. We have a long term vision for the estate which will deliver space that works for retailers and their customers; which generates clear benefits for local communities and drives value for British Land.

Across our London campuses and our multi-let retail properties, we have developed a clear and distinct advantage in managing mixed use environments with development potential, and in enhancing and enlivening our space through placemaking. This acquisition plays very well to those skills.”

The Woolwich Estate comprises 56 retail units and has footfall of 6 million. It benefits from an improving local demographic with over 40% of residents falling within the top three most affluent groups, per CACI consumer classification. Coinciding with the arrival of the Elizabeth Line, Greenwich Council are investing £31 million to deliver a new “Creative District” which will transform five historic buildings into theatre and concert space, with offices and restaurants.

Notes to Editors

About British Land
Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £18.1 billion (British Land share: £13.5 billion) as at 30 September 2017 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 Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 49% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 46 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

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. Our industry-leading sustainability performance led to British Land being awarded a five star rating in the 2017 Global Real Estate Sustainability Benchmark for the second year running.

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 five years.

Further details can be found on the British Land website at www.britishland.com

Enquiries:
Investor Relations:
David Walker
British Land
020 7467 3418

Media:
Pip Wood
British Land
020 7467 2838

Cressida Curtis
British Land
020 7467 2938

Source: British Land

British Land celebrates the completion of the £60 million refurbishment of Meadowhall

British Land celebrates the completion of the £60 million refurbishment of Meadowhall

 

London, 2017-Dec-07 — /EPR Retail News/ — British Land, joint owner of Meadowhall, one of the UK’s premier shopping destinations, is today (06 DEC 2017) celebrating the completion of the £60 million refurbishment of the centre. This marks the end of a two-year programme, during which £40 million was invested in store upgrades by more than 70 brands including existing and new additions to Meadowhall’s line-up.

This combined investment of £100 million has already made a positive impact on performance, with footfall on Black Friday up 8%, making it the busiest on record. The prime Zone A rental tone has risen to over £400, reflecting very strong demand for space with 30 new retailers signing in the last 18 months.

Charles Maudsley, Head of Retail, Leisure and Residential for British Land, said: “The transformation we have achieved at Meadowhall is a great example of how we have listened to our customers and responded to their needs to create space that works for shoppers and enables retailers to thrive in an omni-channel world. It also demonstrates the value we place in working in partnership with the community to deliver significant, long-lasting benefits to the Sheffield City Region.”

Claire Barber, Head of Meadowhall for British Land, added: “Meadowhall is a very different place as a result of our investment. It is lighter and brighter; the space is more modern and the offer is significantly enhanced so it is the first choice for shoppers across the region. Together with our longer term plans for the centre, Meadowhall has a great future as one of the leading retail and leisure destinations in the UK.”

Highlights of the refurbishment include:

  • The creation of four districts each with a distinctive character and offer
  • Columns and bulkheads have been reduced or removed creating lighter, brighter malls, with new glazing, improved lighting and new customer seating added
  • Double height flagship formats introduced by brands, including All Saints and Hollister
  • New brands added including the first-ever physical store for online retailer Joe Browns, as well as Michael Kors, Flannels, Urban Decay, Skinny Dip, Tag Heuer, iSmash, Diesel, Joules, Jack Wills, Neal’s Yard, Nespresso, T2, schuh Kids, Pret a Manger, GBK, Barburrito, and Tapas Revolution
  • Upsizings or increased brand presence by Primark, River Island, Sports Direct, Build-A-Bear, JD Sports, Virgin Holidays and The Entertainer
  • Redesigns by existing occupiers including House of Fraser, M&S, Yo! Sushi, Timberland, Ted Baker, and Molton Brown.

Through the transformation, British Land has delivered a range of benefits for the Sheffield City Region:

  • Over 1,200 jobs were created to deliver the refurbishment, with 35% of the workforce living in Sheffield and 41% overall from the Sheffield City Region
  • Almost 50% of the £60 million spend has been awarded to SMEs
  • 70% of the project spend was made within 25 miles of Meadowhall, with 55% being spent in the Sheffield City Region
  • Local companies employed on the transformation include Dearneside, SCS Group, EE Ingleton Engineering, Clearline, EMR and the Ron Hull Group.

The refurbishment of Meadowhall will be followed by the development of a Leisure Hall, which was granted planning consent in a unanimous vote by Sheffield City Council’s planning committee in September. The £300 million extension will add 330,000 sq ft of new catering and leisure to Meadowhall, as well as enhanced public realm and other amenities.

About British Land

Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £18.1 billion (British Land share: £13.5 billion) as at 30 September 2017 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 Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 49% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 46 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

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. Our industry-leading sustainability performance led to British Land being awarded a five star rating in the 2017 Global Real Estate Sustainability Benchmark for the second year running.

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 five years.

Further details can be found on the British Land website at www.britishland.co

Enquiries:
Jackie Janssen
British Land
020 7467 3449

Pip Wood
British Land
020 7467 2838

Amanda McNally
Aver
020 3514 2137

Nick Thornton
Aver
020 3514 2148

Source: British Land

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British Land rolls out its training programme Bright Lights Starting Out

British Land rolls out its training programme Bright Lights Starting Out

LONDON, UK, 2017-Oct-12 — /EPR Retail News/ — British Land, in partnership with The Source Skills Academy, is rolling out its training programme – Bright Lights Starting Out – across 13 of its Local and Regional retail centres to help youngi people find work in the retail, leisure, food and drink industry.

The free programme, which was launched at six centres in 2016, saw a success rate of 75% of graduates securing a job in retail and hospitality.

The aim of the programme is to provide unemployed young people with valuable skills to help them to start to build a career in modern retail or hospitality, combining classroom teaching with work placements. The five week course runs to coincide with Christmas recruitment. Each asset will see 15 young people aged 16-24 years old undertake the course which combines work place experience with the delivery of nationally accredited qualifications. The successful individuals will graduate with a Level 1 in Retail Knowledge, Level 2 WorldHost Principles of Customer Service and Level 1 Health & Safety.

Participants will benefit from coaching sessions with industry experts, support with interview and CV writing skills in addition to a personal mentor to get set goals for the next six months following completion of the programme.

At the end of the scheme, trainees will receive their formal qualifications at an official celebration event.

Charles Maudsley, Head of Retail, Leisure & Residential for British Land, said: “The retail industry is the UK’s largest private sector employer with some 2.9 million people working in the sector; a third of these are under 25 years old. Bright Lights and the Starting Out training programme is part of our commitment to connect with the local communities in which we operate, offering best in class service to help both our occupiers and local people to grow, thrive and gain new skills. The Starting Out programme is providing skills and training to young people, hugely important to help them in their future careers and to achieve recognised qualifications.”

Bright Lights supports people of all ages, abilities and backgrounds and includes apprenticeships, training and work experience, internships, employment programmes and graduate schemes. Through supporting local skills, employment and procurement, British Land is helping local people and businesses grow whilst at the same time creating a skilled workforce needed for the future and nurturing thriving economies around its assets.

The programme is being delivered at Meadowhall, Sheffield; St Stephen’s, Hull; Teesside, Stockton; Beaumont, Leicester; Serpentine Green, Peterborough; New Mersey, Speke; Giltbrook, Nottingham; Glasgow Fort, Glasgow; Surrey Quays, Rotherhithe; Ealing Broadway, W5; Fort Kinnaird, Edinburgh; Drake Circus, Plymouth and Broughton, Chester.

Enquiries:
Investor Relations
Cressida Curtis, British Land 020 7467 2938
Media
Pip Wood, British Land 020 7467 2838
Jackie Janssen, British Land 020 7467 3449
Emma Hammond, FTI Consulting 020 3727 1227
Gordon Simpson, Finsbury Group 020 7251 3801

Notes to Editors

About British Land
Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £19.1 billion (British Land share: £13.9 billion) as at 31 March 2017 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 Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 48% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 46 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

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.  Our industry-leading sustainability performance led to British Land being awarded a five star rating in the 2017 Global Real Estate Sustainability Benchmark for the second year running.

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 five years.

Further details can be found on the British Land website at www.britishland.com.

iThe programme is aimed at those between 16-24 years, with the exception of Drake Circus, Plymouth which has a different local requirement.

SOURCE: British Land

British Land: Meadowhall received resolution to grant planning consent for £300 million extension

British Land: Meadowhall received resolution to grant planning consent for £300 million extension

 

London, 2017-Sep-19 — /EPR Retail News/ — Meadowhall, one of the UK’s most successful regional shopping destinations, has received a resolution to grant planning consent for a £300 million extension that will transform the centre’s leisure offering for its 24 million annual visitors. Councillors unanimously voted in favour of the 330,000 sq ft development.

The extension will integrate with the front of the existing centre featuring dining and entertaining options, a new cinema, café court, gym, open-air terrace and space for leisure, event and community use.

The Leisure Hall will follow a £60 million refurbishment that is transforming the look and feel of the existing centre. This work will be completed during the autumn, ahead of the peak Christmas trading period, and has directly benefited the local economy with 70% of the work commissioned from companies within 25 miles of the centre.

In anticipation of increasing customer interest in Meadowhall as a result of this comprehensive refurbishment, 40 retailers have invested more than £34 million in redesigning and refitting their existing stores to fit the new contemporary feel. These include All Saints, Hollister, House of Fraser and Hugo Boss with a further 30 currently underway. In the 12 months to June 2017, all 61 occupiers with leases due to expire renewed their tenancies and eight of these retailers increased the size of their space within the centre in advance of the refurbishment’s completion.

30 new brands have also signed at Meadowhall over the last 18 months, with Flannels, Tag Heuer, Nespresso, Neal’s Yard and Godiva all adding to the centre’s premium offer.

Charles Maudsley, Head of Retail, Leisure and Residential for British Land, said:
“We are delighted with the Planning Committee’s decision and will now work with our partners and other stakeholders over the coming months on the detail of the Leisure Hall to ensure Meadowhall delivers the maximum benefits for customers, retailers and the wider Sheffield City Region.

“The refurbishment completing later this year, our continued leasing success, significant store investment by retailers and the Leisure Hall proposals are all significant steps in the centre’s continued evolution.”

Notes to Editors

About British Land:
Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £19.1 billion (British Land share: £13.9 billion) as at 31 March 2017 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 Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 48% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 46 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

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. Our industry-leading sustainability performance led to British Land being named a European Sector Leader in the 2016 Global Real Estate Sustainability Benchmark for the third year running.

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 five years.

Enquiries:
Investor Relations:
Cressida Curtis
British Land
020 7467 2938

Media:
Pip Wood
British Land
020 7467 2838

Jackie Janssen
British Land
020 7467 3449

Nick Thornton
Aver
020 3514 2148

Amanda McNally
Aver 0
20 3514 2137

Further details can be found on the British Land website at www.britishland.com

Source: British Land

British Land: New research reveals symbiotic relationship between a brand’s physical store and its ecommerce platform

British Land: New research reveals symbiotic relationship between a brand’s physical store and its ecommerce platform

 

New research revealing a symbiotic relationship between a brand’s physical stores and its ecommerce platform has been published today by British Land.

London, 2017-Aug-07 — /EPR Retail News/ — The research, using data from Connexity Hitwise, shows that when a new store opens, traffic to the retailer’s website from the surrounding postal area increases by 52% on average within six weeks of opening. Importantly, digital traffic from the local area then remains around this level (figure 1), demonstrating that a physical store has a significant, positive and sustained impact on digital interaction with the brand.

Brands with fewer than 30 stores enjoyed the greatest positive impact from store openings, with uplifts in local traffic to their websites of 84% on average (figure 2), showing that a physical store can make a critical contribution to the online success of expanding brands.

These findings take British Land’s True Value of Stores research one step further and starts to quantify the ‘halo effect’. More work is already underway, in partnership with Revo, to measure the distinct contribution of each channel and ensure leasing models and valuation methods reflect the benefit of the store to retail businesses as a whole.

Ben Dimson, Head of Retail Business Development for British Land, said: “One year on from the True Value of Stores report, the findings are more relevant than ever. Blending channels is increasingly common, pure-plays are still moving to physical and click & collect, an increasingly important link between physical and online, is continuing to take ground. Click & collect usage is on average 46% greater than the national average at our Local centres proving they are particularly well positioned for omnichannel shopping.”

Charles Maudsley, Head of Retail, Leisure & Residential for British Land, said: “The research shows that physical stores are an engine of online growth. Consumers choose brands that align to their lifestyle and values: a physical store enables a retailer to demonstrate its brand in action and drive interest online. At the same time, stores enable retailers to respond to evolving shopping habits, market their brand effectively, and deliver products more efficiently. At British Land, we provide the perfect platform for retailers to do this through our continued investment in Regional and Local centres across the UK.”

Notes to Editors

About the True Value of Stores Research

The True Value of Stores research quantified for the first time the value of click & collect sales and online sales browsed in store. The key findings were that 89% of all UK retail sales touch a store and non-food physical sales are boosted by 9% when adding click & collect sales and online sales browsed in store. The research also identified a ‘halo effect’ which improves brand awareness, customer service and trust, therefore contributing to online sales that do not directly touch the store. Further details can be found at www.britishland.com/truevalueofstores.

About British Land

Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £19.1 billion (British Land share: £13.9 billion) as at 31 March 2017 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 Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 48% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 46 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

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. Our industry-leading sustainability performance led to British Land being named a European Sector Leader in the 2016 Global Real Estate Sustainability Benchmark for the third year running.

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 five years.

Further details can be found on the British Land website at www.britishland.com.

Enquiries:
Investor Relations:
Cressida Curtis
British Land
020 7467 2938

Media:
Pip Wood
British Land
020 7467 2838

Jackie Janssen
British Land
020 7467 3449

Emma Hammond
FTI Consulting
020 3727 1227

Gordon Simpson
Finsbury Group
020 7251 3801

Source: British Land

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British Land supports National Literacy Trust’s Young Readers Programme for the sixth year

British Land supports National Literacy Trust’s Young Readers Programme for the sixth year

 

London, 2017-Jul-27 — /EPR Retail News/ — British Land has partnered with the National Literacy Trust for the sixth year to support its Young Readers Programme – an initiative which has helped more than 19,000 children under the age of 11 to read for fun in their spare time. The Young Readers Programme is celebrating its 20th birthday this year.

Every child that participates in the programme is guided on how to choose books that are of interest and at the right level to encourage an interest in reading outside the classroom. Children are then given the chance to use their new skills to select three new books to take home for free.

The programme has become an annual fixture in the British Land calendar and this year took place across a record 25 local and regional assets including Drake Circus, Plymouth; Meadowhall, Sheffield; Fort Kinnaird, Edinburgh and Old Market, Hereford.

A new addition to the programme is the ‘Young Reading Hero’ competition which identifies and rewards children under the age of 11 who use reading to positively benefit others. The competition is taking place for the second time this year across 15 Local and Regional centres.

A literacy-themed prize will be awarded to the winner at each of the 15 assets including £100 of National Book Tokens for their school, £50 of National Book Tokens for themselves, plus a copy of ‘My Brother is a Superhero’ by David Solomons – winner of last year’s Waterstones Children’s Book Prize.

Charles Maudsley, Head of Retail, Leisure and Residential for British Land, said: “The Young Readers Programme is a fantastic initiative to aid children’s development as well as boosting literacy levels across the country and we are delighted to support the programme for a sixth year. The programme has been running for 20 years now which is testament to the success and creativity of the scheme which continues to engage young children and drive a passion for reading. Literacy underpins the long-term wellbeing and prosperity of every community and I’m very proud to help support the communities we operate in.”

Jonathan Douglas, Director of the National Literacy Trust, said: “We know that reading for pleasure is one of the most effective ways to help children reach their full potential. Encouraging children to read for enjoyment is an important step towards boosting literacy levels. Our research shows that children who enjoy reading every day outside school are five times more likely to read above the expected level for their age than those who don’t. With the support of British Land, its retail centres and retailers across the UK, our Young Readers Programme has helped more than 19,000 children choose books to enjoy and keep. For many, these were the first books they had ever owned.”

Notes to Editors

About British Land
Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £19.1 billion (British Land share: £13.9 billion) as at 31 March 2017 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 Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 48% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 46 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

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. Our industry-leading sustainability performance led to British Land being named a European Sector Leader in the 2016 Global Real Estate Sustainability Benchmark for the third year running.

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 five years.

Further details can be found on the British Land website at www.britishland.com.

Media Enquiries:
Jackie Janssen
Retail PR Manager
British Land
020 7467 3449

Emma Hammond
Senior Director
FTI Consulting
020 3727 1227

Source: British Land

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British Land brought together retailers and the local community to celebrate Teesside’s 25th birthday

British Land brought together retailers and the local community to celebrate Teesside's 25th birthday
British Land brought together retailers and the local community to celebrate Teesside’s 25th birthday

 

London, 2016-Oct-27 — /EPR Retail News/ — Teesside, Stockton celebrated its 25th birthday at the weekend with events that brought together retailers, consumers, the centre team and the local community.

Since opening in October 1991, Teesside has welcomed more than 150 million shoppers through its doors and made an important contribution to the Tees Valley as a driver of regeneration, jobs, training, economic success and caring for the local community.

A £30m complete transformation of the scheme is underway and includes the introduction of new, double-height bespoke glazed shopfronts, a new management suite with improved customer facilities, the creation of smaller units and high quality public realm. Facade improvement works have already been completed on 15 units this year with more planned for 2017.

New retailers introduced to the scheme as a result of the refurbishment so far include Paperchase, Moss Bros, Charles Clinkard, Holland & Barrett, Nando’s and EE. Both River Island and Next have upsized to 16,700 sq ft overall and 55,000 sq ft overall respectively. The combination of all of the above has resulted in increases in dwell time, frequency, retail conversion and catering spend and an innovative new food concept will be launched next month.

The centre contributes £50 million each year to the Tees Valley economy and 6% of all business rates collected by Stockton and Middlesbrough Councils, worth £8.7 million a year, come from Teesside. The centre supports 1 job in every 100 with up to 2,400 jobs at the centre. 80% of people who work at Teesside live in Stockton and Middlesbrough and there are currently 30 apprentices at the centre learning while they earn.

Teesside also supports the local community with £234,000 contributed over the last five years which has benefitted local people, charities and community groups.  Over the past five years almost 1,300 school children have chosen free books and taken part in fun, educational literacy events at Teesside as part of British Land’s long term sponsorship of the National Literacy Trust’s Young Readers Programme.

Teesside is ranked the number two UK retail park by Javelin and the number four UK super park by CACI and is one of the best trading schemes in the country for many retailers.

Charles Maudsley, Head of Retail & Leisure for British Land, said: “We are extremely proud to have been at the heart of the Tees Valley community since 1991. We continue to invest in Teesside in response to the changing ways people live their lives to ensure it remains an outstanding place for modern consumer lifestyles for the next 25 years.”

Teesside comprises 475,000 sq ft of retail and leisure space and is home to more than 50 retail and leisure brands including Marks & Spencer, Next, H&M and River Island.

Notes to Editors
We are one of Europe’s largest publicly listed real estate companies. We own, manage, develop and finance a portfolio of high quality commercial property, focused on retail locations around the UK and London offices. We have total assets in the UK, owned or managed, of £20.0 billion (of which British Land share is £14.6 billion) as valued at 31 March 2016. Our properties are home to over 1,200 different organisations ranging from international brands to local start-ups. Our objective is to deliver long term and sustainable total returns to our shareholders and we do this by focusing on Places People Prefer. People have a choice where they work, shop and live and we aim to create outstanding places which make a positive difference to people’s everyday lives. Our customer orientation enables us to develop a deep understanding of the people who use our places. We employ a lean team of experts, who have the skills to translate this understanding into creating the right places, and we have an efficient capital structure which is able to finance these places effectively.

Retail assets account for 50% of our portfolio which is well matched to the different ways people shop today. We are focused on being the destination of choice for retailers and their customers by being the best provider of spaces and services. Comprising over 20 million sq ft of retail space across multi-lets, superstores, department stores and leisure assets, the retail portfolio is modern, flexible and adaptable to a wide range of formats.

Our Office and Residential portfolio, which accounts for 48% of our portfolio, is focused on London. We have an attractive mix of high quality buildings in well managed environments and a pipeline of development projects which will add significantly to our portfolio. Increasingly, our Offices are in mixed-use environments which include retail and residential elements. Our 7.5 million sq ft of high quality office space includes Regent’s Place and Paddington Central in the West End and Broadgate, the premier City office campus (50% share).

The remaining 2% of our portfolio is at Canada Water where we have a 46 acre redevelopment opportunity in our medium term pipeline. Our industry-leading sustainability strategy is a powerful tool to deliver lasting value for all our stakeholders. By supporting communities, improving environments and growing economies, we create Places People Prefer and enhance long term returns.

In April 2016 British Land received the 2016 Queen’s Award for Enterprise: Sustainable Development as part of Her Majesty The Queen’s 90th birthday honours. The Award is the UK’s highest accolade for business success and is given to companies which bring major economic, social and environmental benefits through their own business success.  It was awarded to British Land for continuous achievement in all these areas over the last five years.

Further details can be found on the British Land website at www.britishland.com.

Investor Relations:
Jonathan Rae
British Land
020 7467 2938

Media Relation:
Pip Wood
British Land
020 7467 2838

Jackie Janssen
British Land
020 7467 3449

Emma Hammond
FTI Consulting
020 3727 1227

Gordon Simpson
Finsbury Group
020 7251 3801

Source: British Land

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British Land completed £733 million property exchange transaction with Tesco

LONDON, 2015-3-23 — /EPR Retail News/ — British Land announces it has completed a £733 million property exchange transaction with Tesco.  Under the terms of the transaction, British Land has sold its 50% interest in a joint venture portfolio of 21 stand-alone foodstores to Tesco and acquired Tesco’s 50% interest in two joint venture portfolios predominately comprising Tesco-anchored shopping centres and retail parks.

The transaction is in line with our strategy to evolve our retail portfolio. It further reduces our foodstore weighting and increases our exposure to multi-let retail parks and shopping centres.  Our full ownership of these assets will provide significant potential to add further value through asset management and development.

Charles Maudsley, Head of Retail & Leisure, British Land, said: “This mutually beneficial transaction clearly demonstrates the great relationship we enjoy with Tesco. It plays to our strengths of managing multi-let assets and gives Tesco more control of their stand-alone portfolio. We see significant opportunity to add value and drive returns through asset management and development.”

Key transaction terms

  • Sale of 50% stake in the Tesco Aqua Limited Partnership (“Aqua”) comprising 21 stand-alone foodstores; portfolio value £352 million (50% share); weighted average lease length of 13.3 years; NIY 4.8%
  • Acquisition of 50% stakes in Tesco BL Holdings Limited (“TBLH”) and The Tesco British Land Property Partnership (“TBLPP”) comprising 3 retail parks and 3 shopping centres, all anchored by Tesco stores, and 3 stand-alone foodstores; combined portfolio value £381 million (50% share); weighted average lease length of 11.4 years; topped up NIY 5.2%
  • British Land will make a net cash payment of £96 million to Tesco reflecting the difference in net asset value (including mark to market on debt) for Aqua (£81 million) and the combined TBLH and TBLPP joint ventures (£177 million).

In line with strategy to evolve the Retail portfolio

  • Stand-alone foodstore weighting reduced from 10% of portfolio to 8%
  • Increases focus on multi-let assets; number of stand-alone foodstores reduced from 79 to 58
  • Reduces the number of British Land joint ventures by 3 and the number of assets held in joint ventures by 30

Opportunity to drive returns through asset management and development

  • Taking full ownership of 660,000 sq ft of retail parks and 730,000 sq ft of shopping centres
  • Potential to enhance returns through asset management notably at Serpentine Green, Peterborough, Beaumont Leys, Leicester and the Kingston Centre, Milton Keynes

Asset swaps in line with valuation and accretive to earnings

  • Property asset swaps in line with latest reported valuations
  • Transaction accretive to earnings
  • Group weighted average interest rate reduced by 15 basis points

Financial effects

Overall, the transaction is accretive to earnings in 2016 reflecting a £2 million increase in net rent and an £8 million reduction in net interest.

The assets acquired within the TBLH and TBLPP joint ventures generate annual accounting net rental income of £20 million. The assets sold within the Aqua joint venture generate £18 million.

The acquired debt held within the TBLH and TBLPP joint ventures currently bears interest of £5 million per annum. The Aqua disposal saves £14 million of interest per annum and including the £96m of net cash payable to Tesco the interest saving is £8m per annum.  The net cash payable will be funded from existing resources.

The Group’s proportionally consolidated weighted average interest rate is reduced by 15 basis points. The proportionately consolidated weighted average debt maturity is unchanged at 8.9 years. The transaction increases LTV by 0.4%.

Net asset value per share is reduced by 3 pence per share principally due to the impact of mark to market on the debt.

Overview of Assets in Swap Arrangement

Acquisition of 50% share of TBLH and TBLPP

3 Shopping Centres:

  • Serpentine Green, Peterborough. 320,000 sq ft shopping centre anchored by 140,000 sq ft Tesco with a strong fashion line-up including Arcadia, Next, River Island & H&M. Potential for expansion of retail offering through development.
  • Beaumont Leys, Leicester. 310,000 sq ft shopping centre anchored by an 150,000 sq ft Tesco.
  • Lisnagelvin, Londonderry. 100,000 sq ft scheme anchored by a 60,000 sq ft Tesco and a 25,000 sq ft Primark.

3 Retail Parks:

  • Kingston Centre, Milton Keynes. A 270,000 sq ft open A1 retail park anchored by a 140,000 sq ft Tesco and including Next, Marks & Spencer, Boots & Mothercare
  • Clifton Moor, York. A 240,000 sq ft mix of open A1 and bulky planning consents anchored by a 120,000 sq ft Tesco. Recently completed terrace let to DFS, Wren, Oak Furnitureland and Harveys.
  • Woodfields Retail Park, Bury.  A 150,000 sq ft retail park anchored by an 85,000 sq ft Tesco and including Next and Boots

3 Stand-alone foodstores (on open market rent reviews):

  • Bursledon, Southampton. A 120,000 sq ft store, affluent catchment and lease recently re-geared to 15 years.
  • Grove Green, Maidstone. A 60,000 sq ft store with 5 unit shops and an affluent demographic
  • Bromley by Bow, London. A 70,000 sq ft store

Sale of 50% Share of Aqua:

  • A portfolio of 21 geographically diverse stand-alone foodstores (c.25% South).
  • All leases have 13.3 years unexpired term and are subject to annual RPI increases

Note: Property data as at 30 September 2014, updated for sales and purchases to 31 December 2014

Enquiries:
Investor Relations
Sally Jones, British Land 020 7467 2942
Media
Pip Wood, British Land 020 7467 2838
Gordon Simpson, Finsbury Group 020 7251 3801

Notes to Editors

About British Land
We are one of Europe’s largest publicly listed real estate companies. We own, manage, develop and finance a portfolio of high quality commercial property, focused on retail locations around the UK and London Offices & Residential. We have total assets in the UK, owned or managed of £19.0 billion (British Land share of which is £12.8 billion), as valued at 30 September 2014. Our properties are home to over 1,000 different organisations and receive over 340 million visits each year. Our objective is to deliver long-term and sustainable total returns to our shareholders and we do this by focusing on Places People Prefer. People have a choice where they work, shop and live and we aim to create outstanding places which make a positive difference to people’s everyday lives. Our customer orientation enables us to develop a deep understanding of the people who use our places. We employ a lean team of experts, who have the skills to translate this understanding into creating the right places, and we have an efficient capital structure which is able to effectively finance these places.

UK Retail assets account for 54% of our portfolio. As the UK’s largest listed owner and manager of retail space, our portfolio is well matched to the different ways people shop today, from major regional shopping centres to single occupier locations. We are focused on being the destination of choice for retailers and their customers by being the best provider of spaces and services. Comprising around 25 million sq ft of retail space across retail parks, superstores, shopping centres, department stores and leisure assets, the retail portfolio is modern, flexible and adaptable to a wide range of formats.

Our Office and Residential portfolio, which accounts for 46% of our portfolio is focused on London.  We have an attractive mix of high quality buildings in well managed environments and a pipeline of development projects which will add significantly to our portfolio. Increasingly, our offices are in mixed-use environments which include retail and residential elements. Our 7.9 million sq ft of high quality office space includes Regent’s Place and Paddington Central in the West End and Broadgate, the premier city office campus (50% share).

Our size and substance demands a responsible approach to business. We believe leadership on issues such as sustainability helps drive our performance and is core to the delivery of our overall objective of driving shareholder value and creating Places People Prefer. Further details can be found on the British Land website at www.britishland.com