REG - British Land Co PLC - Sale of 50% Meadowhall stake

British LandAnnouncement

20/05/2024 07:00

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RNS Number : 0055P  British Land Co PLC  20 May 2024

BRITISH LAND announces sale of its 50% meadowhall STAKE

In line with its strategy to focus on retail parks and reduce exposure to
covered shopping centres, British Land announces that it has exchanged
contracts for the sale of its 50% stake in Meadowhall Shopping Centre to its
partner Norges Bank Investment Management for £360m. This follows the sale of
some ancillary land by the Joint Venture for £7m (British Land share) earlier
this year. Together these deals value the entirety of the Meadowhall Estate at
£734m, 3% above September 2023 book value.

Proceeds after net debt of c.£200m are expected to total c.£156m. The impact
of the transaction on FY25 NTA per share is expected to be negligible and the
FY25 EPS dilution is estimated to be 0.6p prior to reinvestment. The
transaction would reduce HY24 proportionally consolidated LTV by 2.7ppt. As
part of the transaction, British Land will remain as asset manager of
Meadowhall shopping centre, for which it will continue to earn fees in line
with current terms.

The transaction is expected to complete in July 2024 and the proceeds will be
used for general corporate purposes including reinvestment into retail
parks.

Simon Carter, Chief Executive of British Land, said:

"We have had a successful partnership with Norges over many years and are
delighted to continue to work alongside them as asset managers of the centre.

Following the sale of Meadowhall, 93% of our portfolio is now in our preferred
segments of retail parks, campuses and London urban logistics.

We will continue to grow our retail park portfolio; with low capex
requirements parks offer attractive cash returns and at 99% occupancy we are
delivering strong rental growth."

 

-  ENDS -

 

Investors:

Sandra Moura, British
Land
07989 755 535

Sean
Pearcey-Stone
020 7467 3519

Media:

Charlotte Whitley, British
Land
07887 802 535

 

About British Land

Our portfolio of high quality UK commercial property is focused on London
Campuses and Retail & London Urban Logistics. We own or manage a portfolio
valued at £12.7bn (British Land share: £8.7bn) as at 30 September 2023
making us one of Europe's largest listed real estate investment companies.

We create Places People Prefer, delivering the best, most sustainable places
for our customers and communities. Our strategy is to leverage our best in
class platform and proven expertise in development, repositioning and active
management, investing behind two key themes: Campuses and Retail & London
Urban Logistics.

Our three campuses at Broadgate, Paddington Central and Regent's Place are
dynamic neighbourhoods, attracting growth customers and sectors, and offering
some of the best connected, highest quality and most sustainable space in
London. We are delivering our fourth Campus at Canada Water, where we have
planning consent to deliver 5m sq ft of residential, commercial, retail and
community space over 53 acres. Our Campuses account for 62% of our portfolio.

Retail & London Urban Logistics accounts for 38% of the portfolio and is
focused on retail parks which are aligned to the growth of convenience, online
and last mile fulfilment. We are complementing this with urban logistics
primarily in London, focused on development led opportunities.

Sustainability is embedded throughout our business. Our approach is focused on
three key pillars where British Land can create the most benefit: Greener
Spaces, making our whole portfolio net zero carbon, Thriving Places, making a
long-lasting, positive social impact in our communities and Responsible
Choices, advocating responsible business practices across British Land and
throughout our supply chain, and maintaining robust governance structures.
Further details can be found on the British Land website at
www.britishland.com.

About Meadowhall

Meadowhall is 200 acre estate, adjacent to the M1, located on the outskirts of
Sheffield. The estate comprises of a 1.5m sq ft shopping centre with around
280 occupiers, 60k sq ft of solus retail, 143k sq ft distribution centre, 103
bed hotel let to Premier Inn and two plots of development land totalling 50
acres. For the year ended 31 March 2023 the Joint Venture generated net rental
income of £59m.

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