Advertisement

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020