11.06.09
British Land Acquisition Rekindles Office Space Market
British Land has acquired real estate property at 39 Victoria Street, leading to improved prospects for office space markets in the UK. The acquisition marks the re-entry of the group into the real estate markets after a long gap of 2 years. British Land has veered away from any big exposure to this sector during the recession.
Following the announcement, British Land share prices shot up from 19.1p to 492p. This is the single largest investment in the capital city over the past year. The commercial property sector is expected to get a boost with the purchase (amounting to £40.35m) in the West End financial district.
The Victoria Street office is being taken up by Bank of America, which will in turn let it out to nine subtenants. A rent of £47 per square foot is fixed at present for the lease, which will terminate in July 2012.
Tim Roberts, Head of British Land, expressed his satisfaction with the recent purchase, stating that the Victoria Street premises will expand British Land’s presence in the West End area and lend value to its existing portfolio.
The BNP Paribas Real Estate company has identified the financial sector to be requiring desk space to rent the most in coming months. Future developments will show if this will indeed prove to be a major turning point in the revival of the real estate market.
