British Land sells The Peacocks for £116m

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by Lin Freestone

British Land has exchanged contracts with a private investor for the disposal of The Peacocks, its shopping centre in Woking, for £116m. This reflects a net initial yield of 5.75% and is in line with the March 2008 valuation.

The Peacocks comprises almost half a million sq ft of retail and leisure space, with a mix of five anchor stores and 72 retail units. The main anchors are a 140,000 sq ft Debenhams, a Marks & Spencer, a Primark store, and a cinema.

British Land believes it has achieved an attractive price for a good asset. The sale is in line with its strategy to focus its retail portfolio towards those assets which are believed will benefit the most from its occupier-led strategy.

The disposal of The Peacocks in a difficult investment market is positive news, and is the first shopping centre deal exchanged for more than £100m this year.

British Land’s owned and managed retail assets were valued in the region of £11.5bn at the end of March 2008. In-town shopping centres account for 5% of its retail assets.