Wednesday 23 October 2019

British Land fills Broadgate flagship site, securing £54 million in rents

The property developer, which has been involved in several retail CVAs, said capacity for its portfolio is 97%.

British Land’s Broadgate development has just signed up two new tenants to its 100 Liverpool Street building (British Land / PA)
British Land’s Broadgate development has just signed up two new tenants to its 100 Liverpool Street building (British Land / PA)

By Simon Neville, PA City Editor

British Land has secured £54 million in future rent for its flagship development in central London, the company has said.

The Bank of Montreal and the Sumitomo Mitsui Banking Corp have taken 60,000 square feet and 22,000 square feet respectively at the company’s 100 Liverpool Street building, part of British Land’s one million square foot Broadgate development.

The deal means 184,000 square feet has been filled in the building, equating to £54 million of future rent.

An artist’s impression of 100 Liverpool Street, which will have new tenants including the Bank of Montreal (British Land / PA)

Bosses explained this means profit from future developments at the Liverpool Street sites, which also include 1-2 Broadgate and Norton Folgate, is expected to be £300 million.

The updates come ahead of an investor and analyst meeting taking place on Wednesday, where the company also said retail leasing for the five months to August has totalled 500,000 square feet, with rents of £7.2 million.

Occupancy rates were 97%, with rents 3% ahead of estimated rental values, with a 2% premium to previous passing rents.

British Land has been one of several landlords hit in recent months by high street chains using an insolvency process known as a company voluntary arrangement (CVA) to stave off going bust by persuading landlords to cut rents.

The property firm, as a major owner of high street retail space, has been involved in several, including Arcadia and Monsoon Accessorize.

However, it has launched a legal action against the latter, after requests for information from Monsoon and a commitment for the retailer to stump up extra money were not met.

Similar requests from Arcadia, which includes the Topshop, Dorothy Perkins and Miss Selfridge brands, were agreed.

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