British Land acquires the Woolwich Estate in south east London for £103m
British Land has bought the Woolwich Estate, covering 4.9 acres in south east London, £103m representing a net initial yield of 4.1 per cent.
This acquisition is in line with BL’s strategy of focusing on well-connected, mixed use and builds on its portfolio of places benefitting from the Elizabeth Line, including Broadgate, Paddington Central and Ealing Broadway.
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 per cent occupied, with an average lease length of under four years, and average rent of £17 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.”
