British Land Company Plc · LSE:BLND
British Land — Investor Presentation (2022)
51 slides from British Land's investor presentation, 2022
Slide 1: Canada Water
CANADAANATER
Slide 2: Agenda
Overview Simon Carter, CEO Introduction to Canada Water Emma Cariaga, Joint Head of Canada Water & Head of Residential Phase 1 Agenda Roger Madelin, Joint Head of Canada Water Strategic Programme Phil Tait, Director of Development Sustainability Hannah Farahar, Project Director Indicative Financial
Slide 3: Driving returns on our campuses
Driving returns on our campuses Regent’s Place Broadgate Paddington Central Canada Water • Targeting innovation sectors • Delivering value accretive developments
Slide 4: London campus development pipeline
London campus development pipeline Committed developments 10% IRR 12% IRR 11% IRR 11% IRR 1 Broadgate Norton Folgate Aldgate Place Canada Water Phase 1 Near & medium term – targeting low teen IRRs 5 Kingdom Street 2 & 3 Finsbury Avenue Euston Tower Canada Water Masterplan c.8m sq ft of pipeline oppo
Slide 5: Slide 5
Slide 6: Future Canada Water
Canada Plot F1 Water Future residential tower
Slide 7: Masterplan Headlines
Plot F1 residential tower Masterplan Headlines • 10 year scheme • 53 acres • Up to 3,000 homes (25% social rent, 10% intermediate homes) • 2.5m sqft workspace • 1.0m sqft retail, leisure, education, culture • 12 acres of parks, squares and open spaces
Slide 8: The Dock bridge
The The bridge Dock (or boardwalk, or crossing)
Slide 9: The Dock bridge
The TheThe bridge Dock Dock (or boardwalk, or crossing) • SINC status – works will improve ecological and biodiversity values • New 150m long bridge
Slide 10: The Dock
The Dock • New dipping pond
Slide 11: New 3.5 acre park
| See ee iyi te a e! rh Ne N : . *. 3.5-acre park i ee a
Slide 12: Phase 1
Phase L *
Slide 13: Phase 1 well and truly underway
Phase 1 well and truly underway Over £350m of works on site and committed Phase 1 completes in summer 2024
Slide 14: Plots A1 & A2
Plots A1 & A2
Slide 15: Plot A1
Plot A1 • 118,000 sqft workspace • 10,000 sqft of eating, drinking, shopping • 35 storey resi tower with 186 homes • Designed by Allies & Morrison • Completes summer 2024 Embodied Carbon Operational Energy* Office 600 kgCO2/m2 Base Build: 80 kWh/m2 Resi 682 kgCO2/m2 76 kWh/m2 * target
Slide 16: Plot A1
AaUAS SUS MURaNy aM MEME (NOGLTy Wieayi UL NED Ma igi Wize Wiel WeaNNe WON 8 |
Slide 17: . os os a im g me |
. os os a im g me | fi rine i EERE ABBE BBGE GF FR" SERA HBG i:
Slide 18: Plot A2
Plot A2 • 182,000 sqft workspace • 10,000 sqft of eating, drinking, shopping • New 55,000 sqft leisure centre • Designed by Allies & Morrison • Completes summer 2024 Embodied Carbon Operational Energy* Office 666 kgCO2/m2 Base Build: 80 kWh/m2 * target
Slide 19: Terraces on every floor look over the dock
Terraces on every floor look over the dock
Slide 20: New Southwark Fitness Centre
New Southwark Fitness Centre
Slide 21: LB Southwark's new Fitness Centre
LB Southwark’s new Fitness Centre £35m investment by Southwark Council
Slide 22: Plot K1
Plot K1 • 79 affordable homes • Designed by Morris + Co. • Forward purchased by Southwark Council for £18m • Completes summer 2023 Embodied Carbon Operational Energy 722 kgCO2/m2 76 kWh/m2
Slide 23: Plot K1
Plot ghee Eel ead Tiedt E | aul. Lites
Slide 24: The New Paper Garden: a circular economy building
The New Paper Garden: a circular economy building – and the largest Cordwood construction in the UK.
Slide 25: TEDI-London new higher education provider
TEDI-London is a new higher education provider for future engineers, bridging engineering across many disciplines, including mechanical, electrical and electronic, civil, environmental and product design – founded by Arizona State University, King’s College London and UNSW Sydney. The first 10,000 s
Slide 26: The Paper Yard
The Paper Yard • 75,000 sqft of modular space across four buildings • Suitable for office use, dry and wet labs • 10,000 sq ft let to TEDI-London, delivered within 9 months
Slide 27: Indicative Programme
Indicative Programme
Slide 28: Indicative Programme & Phases
Indicative 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Programme A1 & Phases A2 K1 1 Substation Design & Build UKPN's Works 2 Printworks Demolition Zone L Printworks The Park Leisure Park Demolition F2 3 H3/4 G1 Tesco Tesco Demolition G1 Residential F1 4 E1 E2 SQSC North Demolition D
Slide 29: Canada Water Phase 1
Canada Water Phase 1 t Q3 2021 Q3 2024 Phase 1 commences Phase 1 Complete Paper Yard Opens
Slide 30: Phase 1
NUETEUTTOPTERTE UTTER ACN INOIINN
Slide 31: Canada Water Phase 2
Canada Water Phase 2 t Q3 2021 Q3 2024 Q3 2025 Q4 2026 Phase 1 commences Phase 1 Complete Printworks Complete Phase 2 Complete Paper Yard Opens Park Opens
Slide 32: The Printworks
N ls iB Dpban a He al. &
Slide 33: Zone F, Plot F2
Zone F, Plot F2
Slide 34: Canada Water Phase 3
Canada Water Phase 3 Q3 2021 Q3 2024 Q3 2025 Q4 2026 Q2 2027 Phase 1 commences Phase 1 Complete Printworks Complete Phase 2 Complete Phase 3 Complete Paper Yard Opens Park Opens Tesco Relocate
Slide 35: Artist's impression of Plot H3-4
Artist’s impression of Plot H3-4
Slide 36: Innovation at Canada Water
Innovation at Canada Water Potential for up to 1m sq ft of life sciences space across several plots at Canada Water, including a new modular campus 1m sq ft of life sciences opportunities across the Examples of life sciences opportunities Masterplan 1 Lab-enabled buildings • 300k sq ft building desi
Slide 37: Canada Water Phase 4
Q4 2026 Q2 2027 Q4 2028 Phase 4 Complete Q3 2021 Q3 2024 Q3 2025 Phase 1 commences Phase 1 Complete Printworks Complete Phase 2 Complete Phase 3 Complete Park Opens Town Sqaure Opens Paper Yard Opens Tesco Relocate
Slide 38: Canada Water Phase 5
Canada Water Phase 5 Q3 2021 Q3 2024 Q3 2025 Q4 2026 Q2 2027 Q4 2028 Q3 2030 Phase 1 commences Phase 1 Complete Printworks Complete Phase 2 Complete Phase 3 Complete Phase 4 Complete Phase 5 Complete Paper Yard Opens Park Opens Town Sqaure Opens Tesco Relocate
Slide 39: Sustainability Ambitions
Sustainability Ambitions
Slide 40: Sustainability Ambitions
Sustainability Ambitions Bolder innovations, deeper partnerships, higher standards ‘Sustainability-first’ thinking integrated into everything we do and every decision we make, at every stage of the development.
Slide 41: Low Carbon Energy Strategy
• British Land procures 100% renewable energy • All-electric energy approach with low temperature (ambient) heat networks • BRE Applied Innovation Credit for industry first - re-use of office waste heat to heat residential homes. Now implemented across the masterplan. Low • First use of cement-free,
Slide 42: Circular Economy Principles
Circular Economy Principles From the adaptive re-use of the old Printworks to component-led, flexible design; circular economy principles are baked into the British Land design briefs from day 1.
Slide 43: Higher standards
Higher • Largest cluster of BREEAM Outstanding buildings in the UK • BREEAM Outstanding • BREEAM Communities standards • Home Quality Mark 3 • Largest cluster of NABERS rated offices in the UK • Energy rating tool for building services • All Canada Water buildings registered under NABERS • Some of t
Slide 44: Indicative financial model & assumptions
Indicative financial model & assumptions
Slide 45: Progressing JV partnership
Progressing JV partnership British Land is well progressed in discussions with a partner who shares our vision for Canada Water. Current expectation is for a 50:50 joint venture. A partnership would combine funding from a leading international investor with our best in class operational platform. Ra
Slide 46: Whole project development costs
Whole project development costs Total development cost of c.£3.6bn1 (including cost inflation, excluding land and interest) Development costs 1,400 1,200 1,000 800 600 400 200 - Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Plot and Other Development Costs Infrastructure Development Costs Total developmen
Slide 47: Key assumptions
Key assumptions Commercial Rent - current day Growth p.a. Floor Area Yield at completion (psf) Market / Regeneration1 (NIA sq ft) Offices £47.50 - £52.50 2% / <2.5% 4.75% - 5.00% 2.5m Retail & leisure £16.00 - £35.00 2% / <3% 4.75% - 5.25% 0.5m Residential Values - current day Growth p.a. Floor Area
Slide 48: Comparable offices rents & residential values
Comparable offices rents & residential values Current average offices rents, £psf Current average residential capital value, £psf Kings Cross 85 Kings Cross 2,000 Shoreditch 70 Shoreditch 1,400 White City 60 White City 1,300 Nine Elms 56 Nine Elms 1,300 Wood Wharf 52 Wood Wharf 1,200 Canada Water 52
Slide 49: Indicative phasing plan & net development value
Indicative phasing plan & net development value Whole project NDV of ERV of NDV of Calendar Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 commercial1 commercial2 residential1 Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 £bn £m £bn Phase 1 0.3 16 0.
Slide 50: Value creation
Value creation 11% forecast IRR for Phase 1 and low teens for total project (ungeared) In any JV scenario, value created would be apportioned on a pro rata basis. British Land would be the asset and development manager for which we would earn fees
Slide 51: Thank You
Thank You