British Land property investment values rise
BRITISH Land, the UK’s second largest property company, has said the value of its total investment portfolio grew by 8.2% to £7.9bn over last quarter.
The company, which owns the new Mersey Shopping park in Speke and the 466,000 sq ft Debenhams building in Manchester, reported a 1.4% rise in like-for-like rental income compared with the corresponding quarter to the end of December last year.
British Land also said its net asset value rose to 438p a share in the three month period, above the 425p analysts were expecting, as demand for commercial real estate rallied.
Chief executive Chris Grigg said: “Our third quarter performance saw a continued recovery with strong valuation growth right across the portfolio.
“We’re well placed: British Land combines a prime portfolio, strong income profile, talented people, and significant financial firepower.”
Last week the company bought a Macclesfield supermarket for £30.5m, reflecting a net initial yield of 5.0%. The store is leased to Sainsbury’s for 29.5 years at an initial rent of £22 a sq ft.
British Land said it sees the 73,500 sq ft store as a “secure income stream” for its existing supermarket portfolio.
