British Land boosted by strong levels of demand
BRITISH Land said it has seen encouraging levels of demand in spite of the economic slowdown and highlighted strong interest in its flagship retail and leisure s c h e me s in Scotland.
The listed property giant enjoyed 98.1% occupancy levels in UK retail schemes in the quarter to December. This followed good demand for space from retailers that are doing well, like Next.
Occupancy was down from 98.3% in the third quarter and British Land has been affected by some retail tenants entering a d minist r a t i o n s i nc e December.
However, chief executive Chris Grigg said: “There were a number of failures but they were principally failures we expected. We have a great record of reletting space.”
Phil Goodman, regional centre manager in Scotland, said British Land’s proper- ties north of the Border are in good shape, with visitor numbers and t r ading performance at least in line with the UK.
He added: “In many cases we have development plans to support that.”
Visitor numbers increased 6.2% at the flagship Glasgow Fort shopping park in December, compared to the same month in 2011, to 1.7 million.
The retail park is fully let. British Land has signed agreements with several prominent leisure organisa- tions to fill the units in an extension to the park it expects to open in the autumn. These include the Vue cinema chain and restaurants like Prezzo
Briti s h Land has a conditional agreement in place with a major stores group that is interested in taking space in a possible second phase of the Glasgow Fort development.
Mr Goodman said British Land is talking to several organisations about taking space on the Fort Kinnaird retail park in Edinburgh. The lets concerned could help fill the voids created on the site after Comet and JJB fell into administration relatively quickly.
The firm is negotiating with operators of well known brands that are interested in taking space on a proposed leisure development on the park.
British Land’s portfolio includes around 15 retail properties in Scotland, including parks in Dumbarton and Dumfries.