British Land has agreed the £401m sale of a 75 per cent stake in three buildings in the West End to Allianz Real Estate.
The portfolio includes three buildings; 10 Portman Square, Marble Arch House and York House, all of which are in Marylebone.
As a result of the sale British Land will form a new joint venture with Allianz, with British Land’s interest at 25% and Allianz’s at 75%. British Land will continue to manage all three buildings and will receive an asset management fee.
British Land chief executive Simon Carter said: “We are thrilled to have secured Allianz Real Estate as our partner and crystallised significant value for shareholders.
“This transaction demonstrates that like us, investors remain confident in the long term prospects for high quality assets in prime London locations.”
Kari Pitkin, head of business development for Europe at Allianz Real Estate, added: “This transaction represents a great opportunity to invest in prime assets in a global city on behalf of our Allianz clients thereby broadening our UK investment portfolio.“
The pandemic has wiped almost £1bn off British Land’s portfolio after retailers were forced to close and offices lay empty.
The FTSE 100 firm said the value of its portfolio of offices and shops had fallen from £11.2bn in March to £10.3bn by the end of September.