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British Land Shows Strong Growth

LONDON-British Land unveiled a strong set of results for the year ended 31 march 2001,

By Graham Parker | Updated on May 31, 2001

LONDON-British Land unveiled a strong set of results for the year ended 31 march 2001, with net asset value up 15.6% at 802p ($11.23 per share). Pre-tax and pre-exceptionals profits rose 8.1% to £169.1 million ($237 million).

Chairman John Ritblat said the performance was driven primarily by the growth in values at Broadgate, the 3.77 million sf office complex in the City. Rental values there soared by 19% in a year, driving strong capital growth. Weatherall Green & Smith valued the complex at £2.896 billion ($4.05 billion) on the basis of an equivalent yield of 6.23% and an estimated rental value of £57 ($79.80) per sf. City of London offices now account for over 40% of the British Land portfolio.

But British Land’s next biggest asset has not performed as well. The Meadowhall shopping mall in Sheffield, South Yorkshire, was bought two years ago for £1.28 billion ($1.79 billion). And even though British Land’s active management has pushed up rental income from £45 million ($63 million) to £60 million ($84 million) per annum, this has had no impact on the capital value, because market yields for shopping centres have softened considerably since British land bought the centre.

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