British Land sells Ropemaker Place

Property group British Land has sold Ropemaker Place in London to an international consortium of investors for 472m pounds.

Property group British Land has sold Ropemaker Place in London to an international consortium of investors for 472m pounds.

The sale represents a net initial yield of 5.0% on the basis of an acquisition of the units in Ropemaker Place Unit Trust.

British Land will receive net proceeds of £461m in cash from the sale after costs, 1.4% above the September 2012 book value.

Tim Roberts, the Head of Offices at British Land said: "Ropemaker demonstrates our track record of delivering exceptional, sustainable buildings which are profitably let to quality occupiers. The sale reflects the attractiveness of our buildings to investors as well as occupiers and allows us to recycle capital to invest in our development programme."

The group added that the sale is in line with its strategy of recycling capital and balancing its portfolio between the West End and the City.

The offices are fully let on an average lease length of 14 years, with key tenants including The Bank of Tokyo-Mitsubishi, Mitsubishi Securities International, Markit, Liberum Capital and Macquarie Group, at a day one contractual rent of £24.05m per annum, rising to £27.5m per annum on minimum uplifts at first reviews.

The proceeds of the sale will be redeployed into the company's existing London development programme.

Separately, the company announced its intention to raise £500m through a placing to fund "attractive investment opportunities".

NR

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Government plans could see NS&I boost interest rates
Savings

Government plans could see NS&I boost interest rates

The government-backed bank has a new funding target, which could prompt it to boost the rates on its Premium Bonds, ISAs and bonds.
16 Mar 2023
Share tips of the week – 17 March
Investments

Share tips of the week – 17 March

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
10 Mar 2023
How to make your child a tax-free millionaire by age 37
Investments

How to make your child a tax-free millionaire by age 37

Exclusive research for MoneyWeek reveals how funding an ISA and a pension for your child until age 18 could build up a seven-figure sum by the time th…
14 Mar 2023