Oil and gas multinational BP is reviewing its property strategy, including a possible sale and leaseback of its Sunbury on Thames campus in Surrey, in a bid to raise cash.
The BP International Centre for Business and Technology has 19 years remaining on its lease and is valued at around £290m, which would reflect a 5% yield. The 33-acre site comprises 800,000 sq ft across more than 90 buildings.
Sale and leasebacks have risen in popularity recently, with many companies using them to raise capital while continuing their operations.
A spokesman for BP said: “BP has no plans to move its operations from Sunbury on Thames.
“Having said that, we from time-to-time consult with corporate real estate firms to understand the best ways to hold and manage our global property portfolio. This latest review began in May.”
The decision to review its estate comes as BP continues to slash capital expenditure across its business against the backdrop of falling oil prices, which began to plummet in mid-2014.
Oil prices reached a near 13-year low in the first quarter of this year, contributing to an 80% fall in the company’s profits.
BP said it had already cut spending in Q1, and expected to spend a total of $17bn (£11.7bn) in 2016, but added that it would cut this to $15bn if oil prices did not settle.
In addition to declining oil prices, BP has had to find cash to pay off some $50bn of liabilities following the Macondo oil spill in 2010.
BP has a global property portfolio of more than 400 assets in 80 countries. Its global headquarters is in St James’s, SW1.
JLL is BP’s retained property agent.
• To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @AmberRoltEG or @estatesgazette
