British Land has bought the 4.9 acre Woolwich Estate in South East London for £103m – a net initial yield of 4.1%.
The site, which is predominantly retail and includes 50,000 sq ft of residential and 3,000 sq ft of office space, is part of British Land’s strategy of building a portfolio around areas benefitting from Crossrail opening at the end of the year.
British Land said it has a “long-term vision” to benefit the local community, where 6,000 new homes have already been built or are in the pipeline to coincide with Crossrail’s arrival.
The estate is 95% occupied, with an average lease length of less than four years and an average rent of £17 per sq ft, which the developer said is an opportunity for additional growth.
Charles Maudsley, head of retail, leisure and residential at British Land, said: “This acquisition provides a unique opportunity to create a thriving retail-anchored centre, benefitting forma mix of uses in an exciting, increasingly well-connected and rapidly regenerating part of London.
“Across our London campuses and our multi-let retail properties, we have developed a clear and distinct advantage in managing mixed use environments with development potential, and in enhancing and enlivening our space through placemaking.”
Knight Frank acted for British Land.
