British Land is looking at properties that are now valued at £2.5b after it saw its first increase in quarterly asset values over a period of two years.
Chief executive of British Land, Chris Grigg, stated that the company is now looking at a few bids of about £500m in property including land that makes up the Glasgow Silverburn shopping centre. He also said that there are an additional amount of £2bn investments under consideration by the company.
At the same time, Grigg also stated that it is hard to predict the property patterns and that any new investment would be highly disciplined.
The company is planning to start its new investments off gradually by purchasing about £1bn over the next one to two years mostly on retail properties that are located in central London.
British Land is finally able to look at making acquisitions again after settling a £740m rights issue during the beginning of 2009 and selling its stakes in the Meadowhall shopping centre and the Broadgate office rental development both of which were its largest assets. The sales allowed the company to boost about £3.3bn in cash.
The new framework that British Land will follow when it comes to investments will follow a set time period for how long assets will be held and also set the standard in advance of how much it will dispose of the London commercial property for.
One of their guidelines will be a three to seven year limit on shopping centre investments with their disposal set at the time when their yield no longer covers the debt of the centre, a similar plan will be implemented for office space.
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