British Land has bolstered its leading retail park portfolio with £240 million worth of acquisitions, reflecting a strong blended net equivalent yield of 7.4%. These strategic acquisitions align with the company’s plan to reinvest the £360 million from the sale of its stake in Meadowhall Shopping Centre into expanding its retail park footprint.
These acquisitions are set to enhance British Land’s earnings, with projections indicating an increase in FY26 earnings per share by 0.7p, fully offsetting the dilution from the Meadowhall sale. Pro forma leverage, following the Meadowhall disposal, was 34.6% for FY24, with the new acquisitions raising this by 1.8%.
The six retail parks acquired since April feature an impressive weighted average unexpired lease term of five years. They are let to strong multi-channel and essential retailers, known for their stable financial performance:
- Orchard Centre in Didcot and Cyfarthfa Shopping Park in Merthyr Tydfil (acquired from Brookfield)
- Enham Arch Retail Park in Andover, Queen’s Drive Retail Park in Kilmarnock, and St David’s Retail Park in Bangor (acquired from M7 Real Estate)
- Southampton Road Retail Park in Salisbury
- Additionally, British Land has secured the remaining 12.5% interest in New Mersey Retail Park in Speke.
Simon Carter, Chief Executive of British Land, commented on the acquisitions:
“We’re seeing great opportunities to invest in retail parks, and we’ve quickly delivered on our plan to fully offset the earnings dilution from the £360 million Meadowhall sale with the acquisition of £240 million in high-quality retail parks at attractive yields. With low capital expenditure requirements and 99% occupancy, our retail parks portfolio is generating strong rental growth and offers attractive cash returns.”
British Land’s investment in these prime retail parks highlights its commitment to capitalising on opportunities within the retail sector, ensuring strong returns while continuing to grow its portfolio across the UK.
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