British Land hails £120m in gross capital activity amid acquisitions

British Land has announced that it has made more than £120m in gross capital activity after acquiring three new retail parks and selling 50% stake of its Preston retail park.

The company completed the acquisition of three high quality retail parks for a total of £94m and sold its 50% stake in a retail park in Preston for £30m.

It said that these deals were in line with its strategy to actively recycle capital and consolidate its position as “the UK’s largest owner and operator of retail parks”, strengthening its ability to sign portfolio leasing deals and enhance returns.

The deals included:

• The Capitol Retail and Leisure Park in Preston was acquired for £51.5m (8.43% NIY). It is a 300,000 sq ft park let to a mix of retailers including Next, Home Bargains and Boots.
• Solartron Retail Park, a 90,000 sq ft retail park in Farnborough was purchased for £35m (7.65% NIY).
• DFS, 442 Newmarket Road, acquired for £7.35m (7.14% NIY) which sits immediately adjacent to the B&Q the firm acquired last year. It said the purchase offers a “secure income stream with the potential for a longer-term life sciences redevelopment in a strategic location”.

Kelly Cleveland, head of strategy and investment at British Land, said: “With retailers increasingly focused on the role of their stores, retail parks have emerged as a preferred format, due to their compatibility with omni-channel retail, their affordability and appeal to online resilient businesses.

“This is driving good occupational demand across the portfolio reflected in our 97% occupancy and growing ERVs.”