logo-loader

British Land Maker to Diversify Their Assets Through New Broadgate Joint Venture

Published: 04:20 18 Sep 2009 EDT

no_picture_pai

UK Based Commercial Property firm British Land Plc (LSE:BLND) has announced that it has entered into a joint venture with the Blackstone Group. The deal will see the Blackstone Group acquire a 50% stake in British Land’s Broadgate Estate situated in the City of London.  British Land suggest that the deal represents a positive move in its strategy to diversify its assets away from large single assets. Shares in British Land have fallen 1% in early trading this morning.


The Broadgate Estate, comprises of 14 securitised ‘Broadgate’ buildings and the recently completed sister buildings 201 Bishopsgate and The Broadgate Tower.


Under the terms of the joint venture, Blackstone Partners will pay a net consideration of £77m for their 50% interest in Broadgate, Blackstone’s share of the debt secured against Broadgate’s assets includes £987 million of third party debt. British Land will maintain the role of asset manager and administrator to the Broadgate Estate.


According to this morning’s statement the joint venture share the ambition to invest in and maintain Broadgate's status as the City's pre-eminent office campus. 


For British Land’s perspective, they benefit by reducing their concentration of risk in a single location, as well improving the overall balance of their asset portfolio by reducing the relative scale of long term developments.

British Land Chief Executive, Chris Grigg commented on the groups ongoing portfolio diversification;
“The transaction increases our capacity for profitable investment opportunities elsewhere as we reinvest in more diversified, liquid assets.”

ARway.ai announces multiple new SaaS developer contracts in both the United...

ARway.ai (CSE:ARWY, OTCQB:ARWYF) Chief Executive Officer Evan Gappelberg joined Steve Darling from Proactive to announce multiple new SaaS developer sign-ups for its augmented reality experience platform, focusing on AR indoor navigation. These partnerships represent significant milestones in...

16 minutes ago