7th Jul 2016 16:15
LONDON (Alliance News) - British Land Co PLC on Thursday said it has sold Debenhams PLC's flagship store on Oxford Street in London to an unnamed private investor for GBP400.0 million, bringing the total amount of its retail-property disposals since the end of March to GBP499.0 million.
The FTSE 100-listed property developer said it has exchanged contracts for the seven-storey property, which is let in its entirety to department store Debenhams until 2039.
Since its year-end on March 31, British Land said it has exchanged on GBP99.0 million of retail-property disposals, including GBP79.0 million of superstores, 3.1% ahead of the March valuations. These transactions bring the total retail disposals since the year end to GBP499.0 million, the company said.
British Land said it has exchanged contracts on 11 long-term retail leases totalling 50,000 square feet and GBP2.1 million of rent since the European Union referendum.
The leases are spread across its regional and local portfolios to a range of occupiers including restaurants Yo! Sushi and Nando's, fashion retailer River Island and book retailer Waterstones. In aggregate these lettings are 4.7% ahead of March 2016 estimated rental values, British Land said.
A further 210,000 square foot of retail lettings are under offer, British Land added.
"The disposal of Debenhams on Oxford Street reflects our strategic focus on multi-let assets within the retail portfolio. British Land has entered this period of post-referendum uncertainty in a robust position," said Chief Executive Chris Grigg.
"We have a strong, resilient business with a clear strategy. We have a modern portfolio which is well suited to current and future customer needs. The portfolio is 99% occupied with a wide range of quality occupiers on long leases. Our finances are strong with an loan-to-value ratio of 29.7%, proforma for exchanged disposals, and the group has no refinancing requirement for over four years. Our speculative development commitments are low at 4.0% of the portfolio and we have considerable flexibility in our development pipeline," Grigg added.
British Land shares closed up 3.8% at 565.11 pence on Thursday. The company will provide a first quarter trading update on July 18.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
British LandDebenhams