British Land has made a significant move by acquiring seven retail parks in the UK for £441m.
- The acquisition increases British Land’s retail portfolio to 32% of its total holdings.
- Notable sites include Central Retail Park in Falkirk and Cleveland Retail Park in Middlesbrough.
- Marks & Spencer anchors six out of the seven newly acquired parks.
- The acquisition was funded through a £300m equity placing and existing resources.
British Land has strategically acquired a portfolio of seven retail parks from Brookfield, a Canadian investor, for a total of £441 million. This acquisition is part of a broader strategy to enhance their retail holdings, now making up 32% of their overall portfolio. Such a significant move reflects the company’s confidence in the retail park sector as a preferred format for retailers.
The acquired sites, totalling 1.9 million square feet, include notable locations such as Central Retail Park in Falkirk and Cleveland Retail Park in Middlesbrough. Additionally, Elliott’s Field Shopping Park in Rugby, Telford Forge Shopping Park in Telford, Wellington Retail Park in Waterlooville, and Chilwell Retail Park in Nottingham are part of this purchase. Marks & Spencer serves as the anchor store for six of these parks, with Sainsbury’s anchoring the Telford Forge Shopping Park.
This expansion follows the sale of most of these properties by shopping centre owner Hammerson in 2021. The purchase was financed partly through a £300 million equity placement, with the remainder sourced from existing cash reserves and borrowing facilities.
British Land’s acquisition comes alongside its announcement of a trading update for the six-month period ending 30 September. The company confirmed its FY25 earnings per share guidance at 27.9 pence, indicative of stable financial performance. Chief Executive Simon Carter expressed satisfaction with the high-quality portfolio acquisition, noting that they have invested £711 million into the retail park subsector since April 2024.
Carter further highlighted the strong trading and leasing performance of the broader business, underpinned by disciplined cost management. He also anticipated a slight increase in portfolio values for the half-year, driven by continued estimated rental value growth across the portfolio.
British Land’s strategic acquisition underscores its commitment to strengthening its position in the UK retail park market.
