‘Urban logistics’ and Canada Water redevelopment to power £2bn profit at British Land

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ritish Land is expecting to reap big profits from its investments in London, predicting a £2 billion windfall from its redevelopment of Canada Water and investment in warehouse space in the capital in the coming years.

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CEO Simon Carter said the property giant saw “a wealth of development opportunities” in London as he gave the £2 billion figure.

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British Land is focusing on “urban logistics” in the capital, with investments in warehouse space for next day delivery of online shopping, dark kitchens for takeaway apps and storage for “quick commerce” grocers that promise delivery of food and drink in as little as 10 minutes.

“The fundamentals of urban logistics in London are compelling given the chronic shortage of space,” he said. “We have made a good start to building our Urban Logistics business where we have assembled a c.£1.3bn development pipeline in 12 months.”

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British Land today announced a 25% jump in profits to £251 million in the 12 months to the end of March. The value of its portfolio rose by 6.8% as demand for office space and shop fronts rebounded from pandemic lows.

Carter said: “We are mindful of the current elevated economic and geo-political uncertainties, but our strategic advantage in sectors with pricing power means we can look ahead with confidence.”

British Land said there was a flight to quality in the London office market that should support rents in the coming years. The company owns campuses at Broadgate by Liverpool Street, Regent’s Place near Euston and Paddington Central.

Shares rallied 5p to 511.6p.

Victoria Scholar at Interactive Investor said: “Shares in British Land have recovered by more than 55% since the pandemic lows. However, the stock still has nearly another 30% to go in order to retest the pre-covid highs from December 2019.”

British Land recently sold a major chunk of Paddington to Singapore in a £694 million deal.

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Credit: www.standard.co.uk /

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