British Land has acquired Woolwich Estate, covering 2 hectares in southeast London, to benefit from the Crossrail project. The headline price £103 mln (€117 mln) represents a net initial yield of 4.1%.
The UK REIT said that the acquisition was in line with the strategy of focusing on well-connected, mixed use assets which meet the evolving needs of occupiers and their customers.
Woolwich Estate covers 33,450 m2 of space in central Woolwich. Predominantly retail, it includes over 4,645 m2 of residential and 279 m2 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% 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: '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.
'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. This acquisition plays very well to those skills,' Maudsley said.
Woolwich Estate comprises 56 retail units and has footfall of 6 million. It benefits from an improving local demographic with over 40% of residents falling within the top three most affluent groups, per CACI consumer classification. Coinciding with the arrival of the Elizabeth Line, Greenwich Council are investing £31 mln to deliver a new 'Creative District' which will transform five historic buildings into theatre and concert space, with offices and restaurants.
Image: prosposed Crossrail station at Woolwich
