Sale of Debenhams flagship store on Oxford Street
British Land announces sale of Debenhams flagship store on Oxford Street
British Land announces that it has exchanged contracts for the sale of 334-348 Oxford Street, London to a private investor for £400 million.
The asset is a seven storey building located near Bond Street Underground Station in London's core West End shopping district. The building is let in its entirety to Debenhams until 2039.
In addition, British Land has exchanged on £99 million of further Retail disposals since 31 March 2016, including £79 million of superstores, 3.1% ahead of March valuations. These transactions bring total Retail disposals since the year end to £499 million.
Since the EU Referendum, British Land has exchanged 11 long term Retail leases totalling 50,000 sq ft and £2.1 million of rent on terms agreed prior to the Referendum. The leases are spread across our Regional and Local portfolios to a range of occupiers including Yo! Sushi, Nando's, River Island, Pret A Manger, Byron and Waterstones. In aggregate these lettings are 4.7% ahead of March 2016 ERVs. A further 210,000 sq ft of Retail lettings are under offer.
Chris Grigg, Chief Executive said:
"The disposal of Debenhams on Oxford Street reflects our strategic focus on multi-let assets within the Retail portfolio. British Land has entered this period of post-referendum uncertainty in a robust position. We have a strong, resilient business with a clear strategy. We have a modern portfolio which is well suited to current and future customer needs. The portfolio is 99% occupied with a wide range of quality occupiers on long leases. Our finances are strong with an LTV of 29.7%, proforma for exchanged disposals, and the group has no refinancing requirement for over four years. Our speculative development commitments are low at 4% of the portfolio and we have considerable flexibility in our development pipeline."
British Land will announce its Q1 trading update on the 18 July 2016.
For Information Contact
Investor Relations
Jonathan Rae, British Land 020 7467 2938
Media
Pip Wood, British Land 020 7467 2838
Gordon Simpson, Finsbury 020 7251 3801
Guy Lamming, Finsbury
Forward-Looking Statements
This release contains certain "forward-looking" statements reflecting, among other things, current views on our markets, activities and prospects. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur and which may be beyond British Land's ability to control or predict (such as changing political, economic or market circumstances). Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except to the extent required by law, British Land does not undertake to update or revise forward-looking statements to reflect any changes in British Land's expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based.
Notes to Editors:
About British Land - all figures as at last valuation date of 31 March 2016
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. As the UK's largest listed owner and manager of retail space, our portfolio 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.
This information is provided by RNS
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