British Land has today (27th January) published its Q3 2014/15 trading statement, showing another good performance from the company.
In the period to 31st December 2014, British Land completed 269,000 sq ft of retail lettings and renewals and 168,000 sq ft of office lettings and renewals. A further 116,000 sq ft of office space is under offer.
Reflecting current letting trends, tech related occupiers accounted for 43 per cent of completed office lettings, including 62,000 sq ft to WeWork at 199 Bishopsgate and 11,000 sq ft to Central Working at Crown Place.
Underlying occupancy rates demonstrate strong demand, standing at 98.6 per cent for retail and 96.7 per cent for offices, providing a combined total of 97.8 per cent.
Key milestones achieved in the committed pipeline include the 93,400 sq ft either let or placed under offer at The Leadenhall Building (now 70 per cent let or under offer) and the upcoming unveiling of the revamped Broadgate Circle which is due in April. There has also been continued investment in retail, totalling 175,000 sq ft.
The 145,000 sq ft development at 4 Kingdom Place is reported to be on track while planning permission has been submitted for Blossom Street, Shoreditch and 100 Liverpool Street. The refurbishment of 338 Euston Square is scheduled to begin this summer and the masterplan for the 40 acre Canada Water site is progressing.
British Land has completed over £900 million of asset sales in the year to date (including residential sales) and has lowered its net debt.
Discussing the trading statement Chief Executive of British Land, Chris Grigg, said: “It’s been another good period for our business; we are leasing well, making progress with developments and have continued to take advantage of strong investment markets to recycle capital.
“Our focus on providing shopping environments which meet the changing needs of today’s consumer means we have benefitted from growing demand for the right retail space.
“In offices, supply is constrained and rents are responding well to strong demand. We are making good progress repositioning Broadgate to appeal to a wider range of occupiers, and we’ve been particularly pleased with progress at The Leadenhall Building where we continue to see significant ongoing interest.”
