Shares in British Land (LON:BLND) have climbed into positive territory in today’s session as the company unveiled that it had acquired Woolwich Estate in south east London. The blue-chip group is paying £103 million for the asset which covers 360,000 sq ft of space in central Woolwich.
As of 10:29 GMT, British Land’s share price had added 0.89 percent to 637.80p, outperforming the benchmark FTSE 100 index which has fallen marginally into the red and currently stands 0.20 percent lower at 7,155.99 points. The group’s shares have added more than four percent of their value over the past year, as compared with more than a one-percent dip in the Footsie following this week’s heavy equities selloff.
British Land buys Woolwich Estate
British Land said in a statement today that it had acquired the Woolwich Estate, covering 4.9 acres in south east London, for a headline price £103 million. The company noted that the deal represented a net initial yield of 4.1 percent.
The blue-chip group explained that the deal was in line with its strategy of focusing on well-connected, mixed use assets. The company noted that predominantly in retail, the estate included over 50,000 sq ft of residential and 3,000 sq ft of office space.
“This acquisition provides a unique opportunity to create a thriving retail-anchored centre, benefitting from a mix of uses in an exciting, increasingly well connected and rapidly regenerating part of London,” Charles Maudsley, British Land’s Head of Retail, Leisure & Residential, commented in the statement.
Analysts on blue-chip group
The 18 analysts offering 12-month price targets for British Land for the Financial Times have a median target of 705.00p on the shares, with a high estimate of 810.00p and a low estimate of 475.00p. As of February 3, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group has it that the company will outperform the market.