British Land agrees to sell 12 retail superstores for £429 million
Category: #retail  By Pankaj Singh  Date: 2019-04-25
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British Land agrees to sell 12 retail superstores for £429 million

The transaction is expected to be completed by the end of May.

British Land Company plc reportedly expects receiving net proceeds of about £95 million from its equity alliance with J Sainsbury plc after the sale of 12 superstores. Under the agreement, the investment company has signed contracts for £429 million, as it continues to decrease its exposure to retail industry.

According to The Evening Standard, the share of the British Land in proceeds of the strategic disposal to Realty Income Corporation will be £193.5 million. The amount represents a modest premium to the book value of September 2018 and a net initial yield of 5 percent from the joint venture.

British Land reportedly stated that the move is part of its long-term strategy to decrease its exposure to retail industry and to cut its business assets by around 30-35 percent, down from around 50 percent currently.

The transaction is expected to be completed by the end of May. Based on September 2018 valuations, the exposure of British Land will fall to 1.3 percent of its portfolio with six shops.

According to the reliable sources, the long-term strategy of the British Land is to develop an increasingly mixed-use business concentrated on three core elements: Residential, principally built-to-rent; a smaller, refocused Retail business; and campus-focused London offices.

British Land has pointed out that as a result, it has completed or exchanged on around £1 billion of retail asset sales. Since April 2018, £646 million has been the group’s share at an average yield of 5.7 percent on terms marginally ahead of book value.

British Land has a clear vision of the value of its assets. The group has remained proactive and optimistic despite the challenges in the retail market currently, cited reliable sources.

For the uninitiated, the British Land Company plc is of the largest investment and property development companies in the United Kingdom. It is listed on the London Stock Exchange and FTSE 100 Index.

Source Credit:  https://www.proactiveinvestors.co.uk/companies/news/218941/british-land-to-sell-12-retail-superstores-from-its-joint-venture-with-sainsbury-s-for-429mln-218941.html



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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