British Land Company PLC · LSE:BLND
British Land — Investor Presentation (September 2014)
34 slides from British Land's investor presentation, Sep 23, 2014
Slide 1: Paddington Central Property Tour
WWW.BRITISHLAND.COM PADDINGTON CENTRAL Property Tour 23 SEPTEMBER 2014
Slide 2: Introduction
INTRODUCTION Tim Roberts Head of Offices and Residential 2
Slide 3: Key Office and Residential Highlights
KEY OFFICE AND RESIDENTIAL HIGHLIGHTS • Strengthening leasing performance – Successful letting particularly across our recently completed West End developments • Successful completion of all our 2010 West End developments – Plus 605,000 sq ft at The Leadenhall Building • Well timed acquisitions of P
Slide 4: Leasing Activity Across Our Office Portfolio
LEASING ACTIVITY ACROSS OUR OFFICE PORTFOLIO • Strengthening letting interest in recent months • Over 200,000 sq ft leasing activity completed/under offer in Q1 including at Leadenhall and 10 Portman Square • Further leasing successes since Q1 announcement, including at 10 Portman Square, Marble Arc
Slide 5: Paddington Central Overview
PADDINGTON CENTRAL OVERVIEW • 11 acre mixed-use estate in London’s West End acquired in July 2013 • 1.2m sq ft, comprising 7 modern buildings, and a retail and leisure cluster • 610,000 sq ft income generating properties – Occupied by high quality tenants including AstraZeneca, Nokia, Statoil and Ac
Slide 6: Paddington Central Campus
PADDINGTON CENTRAL CAMPUS Key: BL ownership Non BL ownership Multi-let offices Multi-let offices 268,000 sq ft 143,000 sq ft Development sites 200 residential units (355,000 sq ft) + sold on long leases; Crossrail box below retail at ground floor (80,000 sq ft) FOUR KINGDOM STREET FIVE KINGDOM STREE
Slide 7: Asset Management Initiatives
ASSET MANAGEMENT INITIATIVES David Lockyer Head of West End Asset Management 7
Slide 8: Progress to Date – 1 Year On
PROGRESS TO DATE – 1 YEAR ON • Detailed master-plan developed to form long term vision for the campus and its immediate environment. – Improved existing planning consent for 4 KS and redesigning 5 KS – Significant upgrade works to public realm with next phase due to start early 2015 – Improved conne
Slide 9: Public Realm Improvements – Quick Wins
PUBLIC REALM IMPROVEMENTS – “QUICK WINS” Short-term of objective was to inject life into the campus through summer of sport, film festivals, gigs, food markets, promotions etc to de-sterilise and de-corporatise Before After 9
Slide 10: Masterplan and Vision
MASTERPLAN AND VISION The masterplan focuses on improving connectivity and permeability to the campus so that it better relates to it’s surroundings and feels part of Central London 10
Slide 11: Masterplan and Vision
MASTERPLAN AND VISION Improvements to public realm focused around 7 key areas, as well as the development of 4 and 5 Kingdom Street, are a key factor in delivering the physical elements of the masterplan and Vision 11
Slide 12: Next 12 Months – Progressing Masterplan
NEXT 12 MONTHS – PROGRESSING MASTERPLAN • Start on site with 4 Kingdom Street • Submit planning application for next phase of public realm works which will be focused on the canal-side, the two pedestrian approaches from H&C line exit and Little Venice and the amphitheatre • The rebrand of Paddingto
Slide 13: Paddington Central – Crossrail
PADDINGTON CENTRAL – CROSSRAIL • Paddington will be one of only three Crossrail stations in London’s West End with direct access to City and Docklands • New access point to Crossrail will be opposite the entrance to Paddington Central, off Bishop’s Bridge Road • As part of these works, reconstructio
Slide 14: Improvements to Sheldon Square
IMPROVEMENTS TO SHELDON SQUARE • Replace existing harsh ‘stadium lighting’ • Improve shop fronts • Upgrade public realm • Improve circulation areas and use of amphitheatre 14
Slide 15: Improving the Canal Side Entrances
IMPROVING THE CANAL SIDE ENTRANCES • Upgrade lighting • Introduce art installations • Introduce signage • Widen approaches • Improve finishes • Underpin attractions of canal 15
Slide 16: Improving the Canal Side Entrances
IMPROVING THE CANAL SIDE ENTRANCES • Upgrade lighting • Introduce art installations • Introduce signage • Improve sightlines and visibility • Improve finishes • Incorporate underutilised areas to create activity 16
Slide 17: Improvements to Kingdom Street
IMPROVEMENTS TO KINGDOM STREET • Re-balance the priorities between pedestrians and vehicles • Reduce scale to ‘humanise’ the space • Improve the landscaping to soften the feel
Slide 18: Also Upgrading the Buildings
ALSO UPGRADING THE BUILDINGS • Improving the reception of 2 Kingdom Street to meet occupier needs and their ways of working
Slide 19: Developments
DEVELOPMENTS Nigel Webb Head of Developments 19
Slide 20: Strong Track Record in Successfully Delivering Developments
WE HAVE A STRONG TRACK RECORD IN SUCCESSFULLY DELIVERING DEVELOPMENTS • Largest Central London office developer: over 4.5m sq ft completed since 2004 • High quality buildings with strong environmental record YORK HOUSE WILLIS BUILDING 201 BISHOPSGATE & ROPEMAKER PLACE 10 & 20 TRITON 199 BISHIOPSGATE
Slide 21: Progressing Our New London Developments
PROGRESSING OUR NEW LONDON DEVELOPMENTS • Added 1.1m sq ft of new potential development • Estimated profit of c£375m; of which c£290m to come • Expect to commit to 4 Kingdom Street later this year • Progressing 5 Kingdom Street and Shoreditch plans; retain optionality CLARGES THE ALDGATE YALDING 4 K
Slide 22: Paddington Central – Development Sites
PADDINGTON CENTRAL – DEVELOPMENT SITES • Secured revised planning consent for • Situated below existing Crossrail deck • 210,000 sq ft of offices (as consented) improved 145,200 sq ft building at ground level (80,000 sq ft) • 14 floors • 9 floors • 8 metre clear slab • Plan to redesign scheme and ad
Slide 23: 4 Kingdom Street Critique + Design Changes
4 KINGDOM STREET CRITIQUE + DESIGN CHANGES Opportunities for improvement Proposed solutions and mitigations Poor sub-divisibility + floorplate Redesigned and relocated core to create better variation sub-divisibility Lack of ground floor animation Moved corner reception to central position to create
Slide 24: 4 Kingdom Street – Design Improvements
4 KINGDOM STREET – DESIGN IMPROVEMENTS GROUND FLOOR RECEPTION Rationalised core and central reception increase sub-divisibility TYPICAL UPPER FLOOR Increased lifting capacity and created terraces & tenant amenity space
Slide 25: 4 Kingdom Street – Design Improvements: Facades and Terraces
4 KINGDOM STREET - DESIGN IMPROVEMENTS FACADES AND TERRACES Consented Proposed - Terraces introduced on each level
Slide 26: 4 Kingdom Street – Design Improvements: Proposed Roof Terrace
4 KINGDOM STREET - DESIGN IMPROVEMENTS PROPOSED ROOF TERRACE
Slide 27: Appendices
APPENDICES 27
Slide 28: Paddington Location
PADDINGTON LOCATION 1 3 2 1. Paddington Central 2. Paddington Station 3. Paddington Basin
Slide 29: The Paddington Area
THE PADDINGTON AREA 1 2 3 4 5 Paddington 55-65 North Paddington North Westminster ‘Triangle site’ Central Wharf Road Basin Community School 11 4 5 6 3 11 Stone Wharf / towards 1 Little Venice 2 12 Future Crossrail entrance 7 9 8 12 10 6 7 8 9 10 Paddington Eastbourne St. Mary’s Post Office Merchant
Slide 30: Paddington Central – Key Occupiers
PADDINGTON CENTRAL – KEY OCCUPIERS • Top 8 tenants represent c.75% of the income Area Contracted Unexpired Occupier Building sq ft rent pa £m lease term Astra Zeneca 2 Kingdom Street 75,000 3.4 11 yrs Nokia 2 Kingdom Street 58,000 3.3 8 yrs Rio Tinto 2 Kingdom Street 26,000 1.5 12 yrs Statoil 2 King
Slide 31: 2010 Development Programme
2010 DEVELOPMENT PROGRAMME As at 31 March 2014 Sector BL Share Sq ft PC Current Cost to ERV Pre-let Resi End Calendar Value Complete Value % '000 Year £m £m1,6 £m2 £m £m3 10 - 30 Brock Street, Regent’s Place4 Mixed Use 100 505 Completed 402 3 20.5 19.1 118 10 Portman Square Offices 100 134 Completed
Slide 32: Recently Committed Development Programme
RECENTLY COMMITTED DEVELOPMENT PROGRAMME As at 31 March 2014 Sector BL Share Sq ft PC Current Cost to ERV Pre-let Resi End Calendar Value Complete Value % '000 Year £m £m1,4 £m2 £m £m3 Milton Keynes, Kingston Centre Retail 50 21 Completed 5 - 0.3 0.3 - 6 Old Market, Hereford Retail 100 305 Completed
Slide 33: Near-Term and Prospective Developments
NEAR-TERM AND PROSPECTIVE DEVELOPMENTS As at 31 March 2014 BL Share Sq ft Total Cost Status % '000 £m1 Near-term Pipeline Blossom Street, Shoreditch Mixed Use 100 322 164 Pre-submission 2 5 Kingdom Street Offices 100 240 162 Consented 4 Kingdom Street Offices 100 147 99 Consented Glasgow Fort (Resta
Slide 34: Disclaimer
DISCLAIMER The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ended 31 March 2014. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncertainty
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