British Land Company PLC · LSE:BLND
British Land — Investor Day (June 2018)
61 slides from British Land's investor day presentation, Jun 20, 2018
Slide 1: British Land: Campus Strategy in action
British Land: Campus Strategy in action Broadgate Event 20 June 2018
Slide 2: Agenda
Agenda Broadgate Our Campus Strategy – Tim Roberts, Head of Offices Transforming Broadgate – David Lockyer, Head of Broadgate Delivering Retail – Claire Barber, Head of Central London Retail Wrap up and Q&A – Tim Roberts, Head of Offices Breakouts: • Walk around tour of 100 Liverpool St. • Storey up
Slide 3: Our campus strategy
Our campus strategy Tim Roberts, Head of Offices
Slide 4: Key areas of focus
Key areas of focus Paddington Central 1 Unique campus strategy 2 1.6m sq ft development programme; 63% pre-let or under offer by ERV 3 Storey – broadening our office offer 4 Letting success driving strong performance 4
Slide 5: Our London campuses
Our London campuses 4.2m sq ft 78% Our campuses account for 77% of our offices portfolio 5
Slide 6: Why our campuses are unique
Why our campuses are unique Technology-enabled 1 Act as a social hub 5 smart places Well connected and 2 Diverse retail and 6 accessible leisure offering Safe, pedestrianised 3 Promote collaboration 7 environments High quality facilities and Sustainable and eco- 4 8 amenities friendly Our campus str
Slide 7: Development is a driver of performance
Development is a driver of performance 4 Kingdom Street • Committed development pipeline doubled to 1.6m sq ft • Commitments during the year – 1 Triton Square: fully pre-let to Dentsu Aegis – 1FA: 79,000 sq ft pre-let to Mimecast and 11,000 sq ft pre-let to Everyman – 135 Bishopsgate: 42,000 sq ft p
Slide 8: Broadening our offer, reflecting customer needs
Broadening our offer, reflecting customer needs Driving demand for different Business needs are evolving… Role of real estate is changing… workspaces Adapting to High quality core changing Brand and culture workspace ! environment Flexible and Productive workforce Accessibility Core satellite space
Slide 9: Progress at Storey
Progress at Storey Appold Street • Established to meet the growing need for flexibility from: – SMEs, particularly tech focused – Larger corporates looking for project or overflow space • Fully serviced space, contracts between 1-3 years • Good performance to date: – 114,000 sq ft launched, with spa
Slide 10: Our approach is delivering
Our approach is delivering Regent’s Place • 1.2m sq ft office leasing activity in FY18 – 4x the volume achieved in FY17 – 5.6% ahead of ERV – Representing 7.3% of central London take up Strong start to the year • 55,000 sq ft signed – 11,000 sq ft to Everyman Cinema – 44,000 sq ft tech lettings at 3
Slide 11: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses 135 Bishopsgate 1 Triton Square 328,000 sq ft 366,000 sq ft Completion Q2 2019 Completion Q4 2020 Blossom Street, Shoreditch 5 Kingdom Street 340,000 sq ft 332,00 sq ft 1 Finsbury Avenue 100 Liverpool Street Gateway Building 1-2 Broadgate 291,000 sq
Slide 12: Our strategic approach has been good for performance
Our strategic approach has been good for performance Total return vs IPD 16 14 12 10 8 6 4 2 0 1 year 3 year 5 year 10 year BL IPD London offices FY18 valuation +4.5% with a total return of 9%, outperforming the market 12
Slide 13: Investor Event, June 2018
Investor Event, 20 June 2018
Slide 14: Our vision
Our vision To transform the Broadgate neighbourhood into a world class, seven day, mixed use Central London destination BROADG ATE 14
Slide 15: Broadgate – then
Broadgate – then 1980s corporate campus – a clear reflection of customer needs • Large, prestigious buildings • Safe and pedestrianised • City-focused • Deliberately inward looking Innovative focus on public space – a distinctive feature of the campus Completed redevelopments include • 199 Bishopsga
Slide 16: Businesses in and around Broadgate
Farfetch stripe « Businesses in and OLD STREET around Broadgate Spark 44, Adobe + - aurora Fashions include leaders in Sonar + Mother finance, tech, media and consumer goods SHOREDITCH Pantheon + * Fox Williams + Mayer Brown, TH Real Estate Linklaters « Addleshaw Goddard + GloseBrothers - + Herbert
Slide 17: Broadgate surrounds Liverpool Street station
20 mins Broadgate surrounds Liverpool Street station: London’s most @ Stansted important transport . Baker Street Euston hub on Crossrail eco King’s Cross een Central Se g¥ Bethnal Green « Paddington Farringdon Whart @ ©—9O BROADGATE rs Oo—o Crossrail Heathrow > Bond Whitechapel Stratford Street ER
Slide 18: Broadgate
BROADG ATE 21/06/2018 18
Slide 19: Broadgate Circle
Broadgate Circle ~~ s
Slide 20: Finsbury Avenue Square
Finsbury Avenue Square 20
Slide 21: Exchange Square
Exchange Square 21
Slide 22: Award winning Winter Forest at Broadgate
Award winning Winter Forest at Broadgate BROADG ATE 22
Slide 23: A Sense of Space
A Sense of Space 23
Slide 24: Major hotels in development near Broadgate
46 major hotels are in development or have just launched within a 1 mile radius of Broadgate 24
Slide 25: Broadgate – the next phase
Broadgate – the next phase Move of UBS into 5 Broadgate created a unique opportunity to redevelop nearly one third of the campus Released 3 buildings for development • 100 Liverpool Street • 1 Finsbury Avenue • 2-3 Finsbury Avenue At the same time RBS vacated 135 Bishopsgate Well placed to start dev
Slide 26: 3 developments delivering over 1m sq ft of space
3 developments 100 Liverpool Street delivering over 1m sq ft PC Q120 of space 45% pre-let or under offer 1 Finsbury Avenue 135 Bishopsgate PC Q119 PC Q219 BROADG ATE 26 26
Slide 27: 100 Liverpool Street
100 Liverpool Street Committed to a full redevelopment in December 2016 • 522,000 sq ft including 90,000 sq ft retail • Net increase of 89,000 sq ft • PC Q120 Amongst the smartest, best connected space in London • Single digital spine that connects systems within the building • WiredScore platinum r
Slide 28: Broadgate
BROADG ATE 28 28
Slide 29: Ace Hotel Shoreditch
\ A/Stye Ace Hotel Shore ditch
Slide 30: LAMBA ESET
LAMBA ESET ——
Slide 31: Broadgate
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Slide 32: 1FA Refurbishment
1FA Refurbishment • 291,000 sq ft, including 45,000 sq ft retail and leisure Completion in Q119 • Coinciding with the launch of Crossrail • Phased delivery of committed developments 90,000 sq ft pre-let: • 79,000 sq ft to Mimecast • 11,000 sq ft to Everyman Cinema 73,000 sq ft allocated to Storey BR
Slide 33: 1FA boutique cinema, gym and retail spaces
1FA’s boutique cinema, gym and innovative — retail spaces open out onto Finsbury Avenue Square and its year-round arts programme 33
Slide 34: Neil Murray, co-founder at Mimecast
Neil Murray, co-founder at Mimecast “British Land’s progressive approach will ensure our new London office at 1FA is great for collaboration, innovation and relaxing at the end of the day. “The restaurants and shops, roof terraces within the building and relaxed outdoor space of Finsbury Avenue Squa
Slide 35: 135 Bishopsgate
135 Bishopsgate Further differentiated offer • 21st Century warehouse space • 328,000 sq ft Completion in Q219 • Coinciding with the launch of Crossrail • Phased delivery of committed developments Virtually fully pre-let or under offer • 42,000 sq ft pre-let to Eataly • Under offer on 269,000 sq ft
Slide 36: Broadgate
BROADG ATE 36
Slide 37: 1-2 Broadgate
1-2 Broadgate 507,000 sq ft development including 160,000 sq ft retail 340,000 sq ft offices with up to 28,000 sq ft of terraces on each floor Connects Finsbury Avenue Square with retail at 100 Liverpool Street and the Broadgate Circle to create a 350,000 sq ft retail, F&B and leisure hub Expect to
Slide 38: 2&3 FA
2&3 FA Consent in place for a 563,000 sq ft development Currently retaining optionality through short term lettings BROADG ATE 38
Slide 39: 140,000 sq ft short term lettings across 2-3FA
140,000 sq ft short term lettings across 2-3FA 39
Slide 40: TT LUT
TT LUT 4 i aa IT | BATU Ae Mi I
Slide 41: Delivering Retail
Delivering Retail Claire Barber BROADG ATE 41
Slide 42: Our Vision
Our Vision To transform the Broadgate neighbourhood into a world class, seven day, mixed use Central London destination BROADG ATE 42
Slide 43: Footfall
Footfall Every year 120 million people pass through Liverpool Street Station compared to: Heathrow 76m St Pancras 50m Westfield Stratford 49.5m Covent Garden 42m Bluewater 28m Westfield London 28.5m Brent Cross 12m BROADG ATE 43
Slide 44: Retail floor space and spend
TOTAL RETAIL FLOOR SPACE 525,000 177% increase CATERING RETAIL SPEND £205M £408M 61% increase RESIDENTS WORKERS. 9.35M 882K within our modelled retail catchment within an 18 minute travel time TOTAL SPEND £613M 70% increase
Slide 45: if a new busi
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Slide 46: Retail vision: tomorrow
Retail vision: tomorrow Broadgate retail 2025: 500,000 sq ft 46
Slide 47: Enhancing the public realm Exchange Square
Enhancing the public realm Exchange Square 47
Slide 48: 48
48
Slide 49: Eataly
Eataly “Visiting Borough Market before opening our first Eataly in Italy was a source of great inspiration for our concept. This is why opening a place in London where people can buy, eat and learn is a very important and exciting milestone for us. This is real London. It is not touristic.” Luca Baf
Slide 50: Our neighbours
Our neighbours Some of London’s best food and drink, WN retail and entertainment within short reach - 46 major hotels in development or launched within a 1 mile radius Some of the most prominent gym operators and leisure offerings 7” i
Slide 51: Coming soon
Coming soon EVERYMAN Coming to Broadgate in 2019, a new 3-screen cinema from this boutique operator “We think this incredible part of London and its innovative spirit needs a boutique cinema like Everyman. And we particularly liked Broadgate’s focus on people and on providing a great experience, wit
Slide 52: 100 Liverpool Street 1FA
100 Liverpool Street 1FA 52
Slide 53: Retail space
retail spc ag 0,000 sq ft of prem
Slide 54: A flavour of what's to come
A flavour of what’s to come — _CHANEL
Slide 55: md Yee Pe stetil
md Yee Pe stetil FE Wileoet Street (efare| a
Slide 56: 1-2 Broadgate
1-2 Broadgate 160,000 sq ft retail over 3 floors BROADG ATE 56
Slide 57: Strong demand for our retail space
Strong demand for our retail space 57
Slide 58: Improving the experience for our customers
Improving the experience for our customers 58
Slide 59: Role of the Store
Role of the Store Showroom Transaction Fulfilment BROADG ATE 59
Slide 60: 60
60
Slide 61: Conclusion
Conclusion 1 Triton Square • Unique campus strategy • Significantly de-risked development pipeline • Broadening our offer and transforming our campuses • Widening occupier demand, driving performance 61