British Land checks out on £120m of retail park deals

British Land has purchased three retail park sites and sold a 50% stake in another, culminating in over £120m of gross capital activity.

The real estate investment trust (REIT) said the deals were in line with its strategy to recycle capital and consolidate its position as the UK’s largest owner and operator of retail parks.

British Land has acquired Preston’s Capitol Retail and Leisure Park for £51.5m, a 300,000 sq ft scheme anchored by Next, Home Bargains and Boots, as well as the 90,000 sq ft Solartron Retail Park in Farnborough, home to Lidl, Pets at Home, and DFS.

The REIT has also purchased a DFS store at 442 Newmarket Road in Cambridge. The 20,000 sq ft retail warehouse sits adjacent to a B&Q site British Land acquired last year.

Along with these acquisitions, British Land has also sold a 50% stake in Deepdale Retail Park, Preston, to Melford Capital for £30.3m.

Kelly Cleveland, head of strategy and investment at British Land, said: “With retailers increasingly focused on the role of their stores, retail parks have emerged as a preferred format, due to their compatibility with omni channel retail, their affordability and appeal to online resilient businesses. This is driving good occupational demand across the portfolio reflected in our 97% occupancy and growing estimated rental values.”