British Land shifts focus to West End
DEVELOPER British Land is “tweaking” its property portfolio by extending its West End presence because of financial uncertainty in the City, the company said yesterday.
The switch will see the company concentrate on areas where rents are holding up.
British Land is planning to spend £330m to redevelop a property on Baker Street that it bought in April, as well as expand the nearby Regent’s Place office estate.
Currently 63 per cent of its portfolio is in the Square Mile.
But British Land’s properties lost £4.8bn of their value in the economic crash and City rents fell sharply.
Chief executive Chris Grigg said: “We would be perfectly comfortable with 50 per cent or more of our offices in the West End.
“If you look at the rental performance of the West End over the City, you see better long-term growth.”
British Land sold a 50 per cent stake in Broadgate to Blackstone Group LP for £77m in September.”
The company emphasised that it was “tweaking” its portfolio to achieve a “better balance”.
The company has relatively more more City interests than its rivals, with Land Securities only having 19 per cent of its portfolio in the City.
British Land is Britain’s second-largest real estate investment trust.
Its building were valued at £2.6bn at the end of March.
Around 32 per cent of its properties are offices.