British Land set to buy retail parks in diversification push
British Land today said it was exploring further opportunities to buy retails parks and investing more in urban logistics following a surge in online shopping.
The London-listed real estate firm cited customer confidence in visiting open-air retails parks where social distancing can easily be managed.
A shift in location would see British Land move away from city centre shops and offices, two areas that have been hit heavily by Covid restrictions.
The company said these parks would help in the “Click & Mode” mode of shopping that has been popular during the pandemic.
British Land will submit planning applications for urban logistics developments at Teesside and Sheffield’s Meadowhall over the coming months.
It expects market rents for covered shopping centres to take longer to stabilise than at retail parks, due to higher occupancy costs and lower visitor numbers during the Covid crisis.
British Land said 82 per cent of the total rent was collected for the financial year.