British Land Company PLC (LON:BLND) and Singapore’s sovereign wealth fund GIC have set up Broadgate REIT Limited as the new holding company for their jointly owned Broadgate development in the City, the UK real estate developer said in a press release today.
The new corporate structure will not alter the shareholdings of either British Land or GIC, British Land noted.
Back in December 2013, British Land said it entered into a strategic partnership with GIC to manage the Broadgate estate built around Liverpool Street station, after the Singaporean fund had agreed to buy the 50 percent stake in Broadgate held by Blackstone Real Estate Partners Europe III and Blackstone Real Estate Partners VI. In 2009, British Land and Blackstone had unveiled a strategic 50/50 partnership for the Broadgate development whose gross property price stood at £2.13 billion at the time.
On 21 January, 2015, British Land said it had filed together with its partner GIC a planning application to refurbish and extend 100 Liverpool Street which would provide 515,000 sq ft of office and retail space. The proposed refurbishment is also aimed at improving the connections and public space between 100 Liverpool Street, Liverpool Street Station and Broadgate Circle. The property development is part of the companies’ long-term plans for Broadgate which is expected to benefit from the opening of the new Crossrail station in 2018 and from redevelopment in the neighbourhood. The partners are currently building 5 Broadgate and are redeveloping Broadgate Circle, with both projects seen to be completed in the coming months.
Shares in British Land had gained 1.21 percent to 879.00p as of 11:16 GMT in London today.