British Land has repurchased a total of one million shares at an average price of 1.37 pence per share, taking advantage of what it sees as an undervalued share price. British Land, which converted to real estate investment trust (REIT) status at the beginning of this year, said that it expected to make further purchases that could bring the total invested in the buyback programme up to £250 mln (EUR 370 mln) over the next 12 months.

British Land has repurchased a total of one million shares at an average price of 1.37 pence per share, taking advantage of what it sees as an undervalued share price. British Land, which converted to real estate investment trust (REIT) status at the beginning of this year, said that it expected to make further purchases that could bring the total invested in the buyback programme up to £250 mln (EUR 370 mln) over the next 12 months.

'We are focussed on shareholder value and generally expect to deploy our capital in physical assets from which to target superior returns relative to peers,' explained British Land chief executive Stephen Hester in a statement. 'However, we believe the gap that has recently opened between sector share prices and real estate values is too gloomy in its implied view of our prospects.'

At the same time, Hester said that the group continued to see profitable opportunities to invest its capital in development and selective acquisitions. He also noted that British Land has either completed or contracted on more than £1 bn (EUR 1.5 bn) in asset sales since the 31 March fiscal yearend, with more divestments in the pipeline.