British Land : and GIC complete the sale of 100% of 5 Broadgate to CK Asset Holdings for £1bn

14 Jun 2018

British Land and GIC are pleased to announce that they have completed on the sale of 100% of 5 Broadgate to a wholly-owned indirect subsidiary of CK Asset Holdings Limited for £1 billion, which is in line with 31 March 2018 valuation.

This transaction reflects British Land's consistent strategy of realising value from completed and well-let properties. British Land and its then joint venture partner committed to the development of 5 Broadgate in 2012 to house UBS's global investment banking business. The building, which was completed in 2015, generated a total property return of 18% per annum for British Land, and was a significant catalyst for the further development of Broadgate now underway.

We are currently on site with 1 million sq ft of developments across the campus, and have continued to make good progress on our leasing, with more than 30% of the ERV now pre-let or under offer. A significant amount of the space being developed will be retail and leisure; following key lettings to Eataly and Everyman Cinemas, marketing of this space has just begun and already we are seeing strong interest from a range of operators.

Tim Roberts, Head of Offices, British Land, said: 'This transaction is the latest example of how our strategy is creating value. We delivered a modern, truly distinctive building for UBS, located at the heart of our largest central London campus, adjacent to the forthcoming Crossrail station. We have now taken the opportunity to realise value and reallocate capital across a range of projects, and uses, to deliver the best value for our shareholders.

We remain committed to Broadgate and are making excellent progress on our vision to develop and enhance the campus to create a truly world-class, mixed use central London destination. We are delighted to have found such a high profile and respected investor who shares our long-term plans for the campus.'

Gerald Ma, Member of Executive Committee of CK Asset Holdings, said: '5 Broadgate is a great quality asset with a high quality tenant, and we are delighted with this investment. We are also very pleased to become a partner of British Land and GIC and share their long term vision for the entire Broadgate campus.'

5 Broadgate was designed by architectural practice Make and is a distinctive building which covers more than 700,000 sq ft. net internal area with capacity for 5,000 people across its 12 floors. It is rated Excellent by BREEAM and carbon emissions are 65% lower than the previous two buildings on the site. UBS are committed to the building until 2035.

Notes to Editors

About British Land
Our portfolio of high quality UK commercial property is focused on Retail around the UK and London Offices. We own or manage a portfolio valued at £18.2 billion (British Land share: £13.7 billion) as at 31 March 2018 making us one of Europe's largest listed real estate investment companies.

Our strategy is to provide places which meet the needs of our customers and respond to changing lifestyles - Places People Prefer. We do this by creating great environments both inside and outside our buildings and use our scale and placemaking skills to enhance and enliven them. This expands their appeal to a broader range of occupiers, creating enduring demand and driving sustainable, long term performance.

Our Retail portfolio is focused on Regional and Local multi-let centres, and accounts for 48% of our portfolio. Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 49% of our portfolio. Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 53-acre redevelopment opportunity where we have plans to create a new neighbourhood for London.

Sustainability is embedded throughout our business. Our places, which are designed to meet high sustainability standards, become part of local communities, provide opportunities for skills development and employment and promote wellbeing. Our industry-leading sustainability performance led to British Land being awarded a five-star rating in the 2017 Global Real Estate Sustainability Benchmark for the second year running.

In April 2016 British Land received the Queen's Award for Enterprise: Sustainable Development, the UK's highest accolade for business success for economic, social and environmental achievements over a period of five years.

Further details can be found on the British Land website at www.britishland.com

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