British Land has expanded its property portfolio by acquiring seven retail parks across the UK for £441 million.
- The acquisition includes parks such as Central Retail Park in Falkirk and Cleveland Retail Park in Middlesbrough.
- Most retail parks, except Telford Forge, are anchored by Marks & Spencer.
- The purchase was partly funded through a £300 million equity placing.
- Retail parks now constitute 32% of British Land’s portfolio, reflecting a strategic growth focus.
Property investment firm British Land has made a substantial addition to its portfolio by acquiring seven retail parks across the United Kingdom for a total of £441 million. This significant transaction was made with the Canadian investor Brookfield, indicating a strategic focus on expanding their retail property holdings.
The newly acquired portfolio comprises 1.9 million square feet and includes well-known sites such as Central Retail Park in Falkirk, Cleveland Retail Park in Middlesbrough, and Ravenhead Retail Park in St Helens, among others. Notably, all parks are anchored by Marks & Spencer, except for the Telford Forge Shopping Park, which features a Sainsbury’s as its primary anchor tenant. This indicates a strong and diverse tenant base, likely to attract continuous consumer traffic.
The transaction was financially supported through a combination of a £300 million equity placement and existing cash resources alongside borrowing facilities. This strategic financing approach highlights British Land’s commitment to enhancing its retail offerings while maintaining financial prudence.
Following this acquisition, British Land’s retail parks now constitute 32% of its total property portfolio, an increase from 22% just 18 months ago. This marks a clear strategic direction towards retail parks as the preferred format for retailers, as stated by British Land’s chief executive Simon Carter. He emphasised the market-leading position of the company in this sector and noted the £711 million capital deployed in retail parks since April 2024.
Furthermore, British Land confirmed its earnings per share guidance of 27.9p for the fiscal year 2025, reflecting stable trading performance. The broader business has observed a good level of leasing activity and cost management, contributing to a solid profit performance. They anticipate a marginal increase in portfolio values and continued estimated rental value growth across their holdings.
This acquisition underscores British Land’s strategic emphasis on retail parks, boosting its portfolio and strengthening market position.
