28th Jan 2014 09:04
LONDON (Alliance News) - British Land Company PLC Tuesday said it had a good third quarter as its like-for-like occupancy rose 30 basis points to 97.1% following strong interest in its portfolio.
In an interim management statement for the quarter ended December 31, 2013, the property development and investment firm said it signed 386,000 sq ft of retail lettings/renewals, driving UK retail occupancy up 40 basis points to 98.4%.
In addition, 139,000 sq ft of office lettings/renewals were signed, while investment lettings/renewals were 6.8% ahead of estimated rental value.
"Overall, the UK property market had a strong quarter, with London strengthening further and domestic and international investment spreading out into the regional markets," Chief Executive Chris Grigg said in a statement.
"From an occupational perspective, we saw increased interest in our office space in London, notably in the City," he added.
Grigg said that in the retail property sector, the UK economic recovery is having a positive impact on confidence and the firm continues to benefit from retailers looking to take space in the best quality locations.
Despite seeing an improvement in like-for-like occupancy, underlying occupancy fell 160 basis points for offices and 40 basis points for retail.
Overall, British Land said underlying occupancy for all properties, retail and office, stood at 96.5%, down 30 basis points.
The firm disposed of assets worth GBP405 million since the end of the first half, including the Eastgate Shopping Centre in Basildon for GBP88.6 million earlier this month.
The company said its 2012 London programme is now 70% pre-let or under offer, with nearly 80% of the residential units sold or pre-sold.
In a separate note, British Land said its 50:50 joint venture with Oxford Properties has signed a new letting with serviced office business, Servcorp, for level 30 at the Leadenhall Building.
Level 30 provides 11,851 square feet with the letting on a rent of GBP72.50 per square feet for a 15 year term and a lessee's break option at 10 years.
The initial rent free period is 24 months and there will be a further rent-free period of six months if the option to break is not exercised.
The letting is the first single-floor letting in the Leadenhall Building, nicknamed the "cheese grater", which is currently under construction in the City of London.
British Land shares were trading at 666.39 pence Tuesday, up 4.39 pence or 0.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
British Land