Proposal to list Phases 1-4 Broadgate turned down

RNS Number : 4760I

British Land Co PLC

15 June 2011

 



Proposal to list Phases 1-4 Broadgate turned down

Following the decision by Culture Secretary, Jeremy Hunt, that 1-4 Broadgate should not be listed, British Land and Blackstone, are proceeding with their plans to build a new world class office building for UBS at 5 Broadgate.  The building represents a total investment of £850m and secures 5,000 construction jobs, which will be created over the next 5 years, along with the associated economic activity and growth.

Chris Grigg, British Land chief executive said: "I am delighted by today's decision as it allows Broadgate to continue to evolve as a sustainable and flexible office location that will meet the future needs of occupiers whilst maintaining the sense of space and place for which it is rightly renowned around the globe. With the decision made today by Jeremy Hunt, the Government has also sent out a message loud and clear to the world that the UK is 'open for business."

The City of London Planning Committee resolved to grant planning permission for a new world class office building for financial services firm UBS at 5 Broadgate in April. The new 700,000 sq ft (66,890 sq m) building includes four trading floors capable of accommodating approximately 750 traders per floor. 5 Broadgate will allow UBS to bring together its trading operation into one building in the City. 

This new building also represents a further stage in the successful evolution of the Broadgate office estate enabling it to meet both the current and future needs of existing and potential occupiers for attractive, flexible and sustainable environments for their employees. The retention of one of the world's leading investment banks in the heart of the City of London reinforces London's status as a world class financial centre.

Designed by leading architectural practice Make, 5 Broadgate will meet the highest standards of sustainability in terms of its energy performance, including the largest array of solar panels on a commercial building in London, rain water harvesting, green roof and cycling facilities.

Enquiries:

Investor Relations

Sally Jones, British Land                                                020 7467 2942

Media

Pip Wood, British Land                                                   020 7467 2838

Guy Lamming, Finsbury Group/                                       020 7251 3801

Gordon Simpson, Finsbury Group

Notes to Editors

Broadgate is the premier office campus in the City, providing around 4.4 million sq ft of office, retail and leisure space. The re-development of 4 and 6 Broadgate is part of an ongoing investment programme in the Estate aimed at providing modern, world-class accommodation for occupiers. The agreement with UBS further improves the quality of the lease profile and income flow from the estate.

UBS is currently the largest tenant in Broadgate occupying wholly or in part 5 buildings on the estate covering just over 1 million sq ft of office space. The existing leases, which have tenant break options between September 2013 and 2017, generate annual passing rent of £45 million.

5 Broadgate will be fully let to UBS at an initial headline rent of £54.50 per sq ft subject to annual increases in line with RPI, within a range of 0% - 4% per annum, and with an 18-month rent free period. The building is on a 20 year lease with 156,000 sq ft of the upper floors subject to break clauses at 10 and 15 years giving a weighted average lease term of 18.2 years to first break.

As part of the Agreement for Leases, UBS agreed a deferral of the break option at 100 Liverpool Street and 8-10 Broadgate from September 2013 to September 2015 unconditional upon the outcome of the development of 5 Broadgate. Subject to the Agreement for Leases becoming unconditional at 5 Broadgate, deferral of the breaks at 1 Finsbury Avenue, 2 Finsbury Avenue and 100 Liverpool Street were agreed for a minimum of 18 months post the completion of 5 Broadgate. In addition, UBS recently agreed to extend their break option at 3 Finsbury Avenue on 74,000 sq ft to 2018.

About British Land

British Land is one of Europe's largest Real Estate Investment Trusts (REITs) with total assets, owned or managed, of £14.9 billion (British Land share £9.6 billion), as valued at 31 March 2011. Through our property and finance expertise we attract experienced partners to create properties and environments which are home to over 1,000 different organisations and visited byover 250 million people each year. Our property portfolio is focused on prime retail locations and Central London offices which attract high quality occupiers committed to long leases. Our occupancy rate of 97.8% and average lease length of 11.5 years are among the highest of the major UK REITs.

Retail assets account for 66% of our portfolio, around 80% of which are located at prime out-of-town sites. Comprising some 27 million sq ft of retail space across 90 retail warehouse properties, 99 superstores, 12 shopping centres and 10 department stores, the retail portfolio is generally modern, flexible and adaptable to a wide range of formats. Active asset management delivers the attractive space to both retailers and consumers.

London offices, located in the City and West End, comprise 32% of the portfolio (rising to an estimated 37% on completion of current development). 7 million sq ft of office space includes Broadgate, the premier City office campus (50% share) and Regent's Place in the West End. We are also investing £1.1 billion to create Central London's largest committed office development programme which will deliver 2.2 million sq ft of high quality space by 2014, including a 700,000 sq ft building at 5 Broadgate, the 610,000 sq ft Leadenhall Building in London's insurance district and the 500,000 sq ft NEQ building at Regent's Place.

Our size and substance demands a responsible approach to business and we focus on five areas which matter most to us and our key stakeholders: managing buildings efficiently; developing sustainable buildings; enhancing biodiversity, exceeding customers' expectations and focusing on local communities. We believe leadership on issues such as sustainability helps drive our performance and is core to our corporate aim of building the best REIT in Europe.

Further details can be found on the British Land website at www.britishland.com 

 

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