Home Commercial Property £1bn boost for London property development announced

£1bn boost for London property development announced

by Asa
13th Mar 13 11:43 am

UK property giant British Land yesterday announced plans to spend £1 billion in London property acquisitions and developments.

The UK’s second biggest property firm raised half the sum from shareholders and the rest from its sale of Ropemaker Place in the City to AXA Real Estate for £472m.

“It’s very good news for London,” British Land’s chief executive Chris Grigg said in a statement.

“We’ve got a lot of interest in the share placing and confirmation from shareholders that this is exactly the type of thing they want to see British Land doing.”

The money is expected to finance £123m worth of already completed deals, an additional £150m already in negotiation, with the rest earmarked for future projects.

British Land has previously announced an overall shift in strategy away from City investments and more toward west London, in hopes that Crossrail will revitalise other parts of the city. Last month, the firm spent £142m on the Ealing Broadway shopping centre, expected to be one of the key beneficiaries when the fast-speed rail opens in 2018. (Find out why we think Ealing could be a London residential property hotspot.)

British Land’s share-placing scheme, which raised half a billion pounds, saw British Land offer 90 million new shares, representing almost 10% of its existing share capital.

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