British Land buys Woolwich Estate
British Land buys Woolwich Estate – British Land has acquired the Woolwich Estate, a retail-focused, multi-use estate covering 4.9 acres in south east London for a headline price GBP103 million representing a net initial yield of 4.1%.
Part of the attraction for British Land is that it builds their portfolio of places benefitting from the Elizabeth Line, including Broadgate, Paddington Central and Ealing Broadway. They say that “It makes an exciting addition to our existing portfolio of Local retail centres, which provide convenience-led shopping for local communities.”
The Woolwich estate covers 360,000 sq ft of space in central Woolwich. Predominantly retail, it includes over 50,000 sq ft of residential and 3,000 sq ft of office space. The area is already benefitting from significant regeneration, led by the Elizabeth Line which launches from Woolwich in December 2018 reducing journey times to Canary Wharf and Bond Street to 8 and 22 minutes respectively. To coincide with this, 6,000 new homes have been built or are in the pipeline. The estate is currently 95% occupied, with an average lease length of under four years, and average rent of GBP17 psf, providing British Land with an attractive opportunity to strengthen the offer and mix in line with the improving catchment.
Charles Maudsley, Head of Retail, Leisure & Residential at British Land, said: “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. We have a long term vision for the estate which will deliver space that works for retailers and their customers; which generates clear benefits for local communities and drives value for British Land.
Across our London campuses and our multi-let retail properties, we have developed a clear and distinct advantage in managing mixed use environments with development potential, and in enhancing and enlivening our space through placemaking. This acquisition plays very well to those skills.”
The Woolwich Estate comprises 56 retail units and has footfall of 6 million. It is set over Beresford Square, Hare Street and Powis Street in the Royal Borough of Greenwich. Tenants include Peacocks, Boots, Primark, Dunkin Donuts, Gregs and New Look. There are also more than 50 apartments. It benefits from an improving local demographic with over 40% of residents falling within the top three most affluent groups, per CACI consumer classification. Coinciding with the arrival of the Elizabeth Line, Greenwich Council are investing £31m to deliver a new “Creative District” which will transform five historic buildings into theatre and concert space, with offices and restaurants.
BLND : British Land buys Woolwich Estate