UK REIT watch: British Land buys key Ealing Broadway shopping centre block

on Nov 20, 2013
Updated: Oct 21, 2019
Listen, Wednesday, November 20: British Land (LON:BLND), the UK’s second-largest real estate investment trust (REIT) has bought the Crystal House Block in Ealing Broadway.

The REIT announced in a statement yesterday that it had acquired the asset from a Northern Irish- based private investor for £28.8 million, reflecting a net initial yield of 5.95 percent. The block, which has some key retail tenants including The Body Shop, Monsoon, The Perfume Shop and Ernest Jones, forms one of the three entrances to Ealing Broadway Shopping Centre and provides single ownership of the entire centre for the first time in the scheme’s 30-year history.

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British Land bought Ealing Broadway Shopping Centre in February from Dutch fund managers Wereldhave for £142.5 million. It comprises 330,000 sq ft of retail and leisure space, 800 car parking spaces and a multi-let office. The 8.2-acre site, which has been refurbished and has over 70 retail units, is anchored by Primark, Marks & Spencer, Tesco, River Island and H&M with other occupiers including Boots and Wagamama.

Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Charles Maudsley, Head of Retail for British Land, said in the group’s statement yesterday: “The acquisition of the front section of Ealing Broadway Shopping Centre unlocks significant opportunities to grow and develop the entire centre by continuing to improve the retail mix and increasing the leisure offer.”

British Land’s share price has fallen around 0.7 percent so far today.
**As of 13:02 UTC, buy British Land shares at 601.50p.**
**As of 13:02 UTC, sell British Land shares at 601.00p.**
***Land Securities focuses on Victoria development***
Britian’s biggest REIT, Land Securities (LON:LAND), is focusing all of its residential building efforts on London’s Victoria neighbourhood. As Bloomberg reported yesterday, the company’s residential director, Tom Eshelby, has said in an interview in Singapore that the property firm would start marketing its 170-unit residential project — part of a 5.5 acre (2.2 hectare), £2.2 billion development of offices, retail, shops and homes in the Victoria area — early next year.

In relation to the current property market backdrop, Eshelby said prices in central London are estimated to climb 25 percent in the next five years. He added that as prices in other parts of the UK are still not back to their 2008 levels, London house prices have “massively outperformed” the rest of the country over the past five years.

According to Eshelby’s statement, there are “millions of high-net-worth individuals in the world and there are thousands of new homes in London,” which suggests a continued imbalance between supply and demand. In terms of demand, he noted that according to Land Securities’ estimates, two-thirds of new London homes sold before completion are being purchased by Southeast Asian buyers.
Land Securities’ share price has lost more than 1.5 percent so far today.
**As of 13:05 UTC, buy Land Securities shares at 948.00p**
**As of 13:05 UTC, sell Land Securities shares at 947.50p.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


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