UK property company British Land, one of Europe’s largest Real Estate Investment Trusts (REITs), revealed today that it has invested GBP470 in acquiring property at Paddington Central in the West End of London.
British Land said its investment in the 1.2 million sq. ft. office-led, mixed use estate, located near Paddington railway station, one of London’s main transport hubs, offers an attractive blend of income and capital return. The acquired assets have potential for major development, with considerable opportunities to upgrade the estate through asset management and development in the future.
The Paddington Central real estate is comprised of 3 modern buildings, with a 610,000 sq. ft. retail/leisure cluster that is let to major corporate companies including AstraZeneca, Nokia, Statoil and Accor. The average lease length is 11 years with 91% occupancy and with strong links to Heathrow and the M4 corridor, the property is said to be well positioned to benefit from improvements to local infrastructure and regeneration.
Chief executive of British Land, Chris Gregg, stated: “We are delighted to have bought into Paddington Central. It is an investment which plays to our asset management and development strengths, is in line with our strategy of increasing exposure to London and replenishing the development pipeline, and one we expect to generate strong returns. This is the most significant acquisition we have made since the equity placing in March and we are confident that investment of those proceeds will now be accretive to 2014 earnings, ahead of our original objective.”