When British Land (BLND) announces full-year figures on Wednesday, investors can expect to see further evidence of a shift into higher-quality retail sites. In the past year it has disposed of £386m of retail assets, a figure broadly matched by acquisitions. The most recent disposals include St James Retail Park in Dumbarton for £45.8m - giving the buyer a rental or 'net initial' yield of 5.9 per cent - and Cwmbran Retail Park for £32.3m (a yield of 6.4 per cent).
Retail assets such as Meadowhall in Yorkshire and Surrey Quays in London now account for 59 per cent of the property portfolio; around 80 per cent of these are located in prime out-of-town sites. However, the group also offers significant exposure to London offices; these will comprise 43 per cent of the portfolio on completion of the current committed development pipeline. By concentrating on prime assets in sought-after locations, the group has also achieved 97 per cent occupancy, with an average lease length (to first break) of 11 years.
