British Land upgrades retail park guidance
British Land has upgraded the estimated rental value (ERV) growth guidance of its retail park estate for the 2024 financial year from 2-4% to 3-5%.
The real estate investment trust (REIT) – which claims to be the UK’s largest retail park owner and operator with an 8% market share – said the format is preferred by a wide range of customers due to its affordability, convenience, and omnichannel capabilities.
It added that these factors, along with limited new supply due to planning constraints, small lot sizes, and market values below replacement costs, make retail parks an “attractive and liquid investment”.
British Land said strong demand and limited supply combined with its scale and focus on operational execution is keeping occupancy its retail park occupancy at 99%.
The REIT has continued to see significant leasing momentum across its retail parks, and in the 5 months to 30 August it leased 511,000 sq ft of retail park space – 15.3% above ERV – with a further 677,000 sq ft under offer at 19.4% above ERV.
Key deals completed at British Land’s retail parks in the period include five deals with Frasers Group, a 23,000 sq ft letting to Primark at Glasgow Fort, and a 43,000 sq ft letting with B&M at Teesside Park.
This comes as British Land hosted an asset tour for investors and analysts at Nugent Shopping Park in Orpington on Tuesday.
The REIT has previously said its main focus is retail parks, having described them as the “winning format”.