British Land (LON:BLND) and partner Oxford Properties have signed a lease agreement with DRW Trading Group for the Leadenhall Building in the City of London. The FTSE 100-listed real estate investment trust (REIT) said in a statement this morning that the building -- known as the ‘Cheesegrater’ due to its sharp appearance -- was now nearly 90 percent let or under offer, with only five more floors to be filled.
The transaction, the seventh to complete at the building this year, will see DRW joining Brit Insurance, Spanish banking group Banco Sabadell, Kames Capital, shipping broker Affinity and IT provider Ipsoft. British Land’s head of offices, Tim Roberts, noted that there has been strong demand for upper floors of the building since completion. "We look forward to welcoming DRW, and our other confirmed occupiers to the building over the coming months," he said.
In May, British Land reported a rise in full-year profit and an increase in its portfolio value. The REIT, which has offices and residential properties in London and retail and leisure properties around the UK, is now due to update the market on its first-quarter performance. Investors expect Monday’s interim statement to show continued growth at the group. The outlook is robust, with rising employment in London combined with real wage growth, showing it should support demand for London offices and regional retail respectively.
British Land’s share price dipped into the red this morning, but recovered later during the session. As of 10:27 BST, the stock stood at 841.68p – just 0.04 percent down on the day. So far this year, the property developer’ shares have risen almost eight percent.