Portfolio Description – Principal Sectors

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Portfolio Description – Principal Sectors Preliminary results for the year to 31 March 2007 Supplementary Information PORTFOLIO DESCRIPTION – PRINCIPAL SECTORS OUT OF TOWN RETAIL - £8 billion Retail Warehouse Portfolio British Land’s retail warehouse park investments represent 24.1% of the portfolio. Included in these investments are: British Land’s share Teesside Shopping Park, Stockton on Tees £4.1 billion This freehold property is located at the intersection of the A66 Total value £6.8 billion and A19 trunk roads between Stockton on Tees and 118 retail warehouse Middlesbrough and comprises: properties, of which: Phase 1: 340,000 sq ft of open A1 retail space arranged in 31 units, on a site of 47 acres. 78 retail parks with total Phase 2: an 8.1 acre site located on the Park’s principal access 1248 units; and comprises two retail units totalling 42,000 sq ft and three 40 solus units restaurant units totalling 11,700 sq ft. Total floor area 14.4m sq ft Phase 3: An 8,000 sq ft retail unit and the reversionary interest in 74% with open A1 use the adjoining unit, plus a 27 acre site which may be considered Tenants include: for future development. Top rents at the park are now £47.50 per sq ft. Arcadia Argos Homebase DIY Stores Asda The portfolio of stand alone Homebase stores comprises 20 B&Q properties. Located mainly in the South East of England, annual rents total £12.9 million, averaging £16 per sq ft. The majority Blacks are let on 20 year leases from December 2000. Total floor area Boots is 806,000 sq ft. Borders The Kingston Centre, Kingston, Milton Keynes Carpetright (50% owned in Tesco BL Holdings joint venture) Comet The Kingston Centre occupies a freehold 35 acre site, close to DFS junctions 13 and 14 of the M1 motorway and provides a total of Dixons Group 242,000 sq ft of open A1 retail space. ELC The Centre includes: a 136,400 sq ft Tesco Extra superstore; Halfords eight retail warehouses totalling 92,900 sq ft, let to tenants Homebase including Boots, Mothercare, Next, Marks & Spencer and Mamas JJB Sports & Papas; a covered shopping mall with 12 units totalling a further 9,200 sq ft; a drive-thru McDonalds; a pub; a car showroom; and Mamas and Papas stand alone units let to Dominos Pizza and Carphone Marks & Spencer Warehouse. Matalan Speke, New Mersey Shopping Park (HUT) Morrisons A freehold part open A1/part restricted planning consent retail Mothercare park of 481,000 sq ft in 30 units and two restaurants. New Look Key tenants: Boots, Borders, B&Q, ELC, Gap, Next, Marks and Next Spencer, River Island and New Look. Pets At Home Glasgow Fort, Glasgow (HUT) Poundstretcher A long leasehold open A1 park of 387,500 sq ft in 60 units (plus Sainsbury’s kiosks). Sports World Key tenants: Boots, Zara, Oasis, River Island, Next, Top Shop, Tesco Virgin, Starbucks, Argos, H Samuel, Mamas & Papas, New Look. TK Maxx Toys R Us Parkgate Shopping Park, Rotherham (HUT) Virgin A freehold open A1 park of 561,500 sq ft. There are a total of 37 WH Smith retail units and a 95,000 sq ft Morrisons foodstore. Key tenants: Next, Matalan, Marks and Spencer, Boots, TK Zara Maxx, Bhs, New Look, Arcadia, WH Smith, Homebase and Predominantly freehold Argos. Total rent passing £242m pa British Land’s share Fort Kinnaird Shopping Park, Edinburgh (HUT) A long leasehold open A1 shopping park of 548,000 sq ft in 49 £153m pa units, four food outlets, two leisure outlets and factory and office Average rent £20.30 per sq ft space of 91,000 sq ft. Weighted average lease Key tenants: Borders, ELC, HMV, Marks and Spencer, Next, term including breaks H&M, Gap and New Look. 13.4 years The British Land Company PLC 1 Preliminary results for the year to 31 March 2007 Supplementary Information Superstores Portfolio British Land’s share British Land’s investment in superstores represents 13.6% £2.3 billion of the total portfolio. Total value £2.9 billion 89 superstores located We calculate that we are the largest owner of UK across England, Wales and superstore properties, other than the occupiers Northern Ireland themselves. 90% of stores larger than 40,000 sq ft In an increasingly restrictive planning environment and Average store size with limited new supply, the retailers continue to require 69,000 sq ft more and larger stores and are prepared to commit to full Total floor area 6.14m sq ft lease lengths of over 20 years. Total site area 567 acres These investments, acquired over some 17 years, have Tenants: been enlarged by 49 extensions and redevelopments, Morrisons/Safeway adding a total of 727,000 sq ft. (2 stores) Sainsbury’s (44 stores) In addition to these, British Land also owns, directly or Somerfield (7 stores) 50% in joint ventures, a further 12 superstores which are Tesco (35 stores) included in other sectors of the portfolio (such as retail Waitrose (1 store) warehouse parks), and total a further 1 million sq ft). 55 stores 100% owned 34 stores owned 50% in joint ventures Total rent passing £129m pa British Land’s share £102m pa, Average rent £20.83 per sq ft Weighted average lease term to break (and expiry) 20.4 years The British Land Company PLC 2 Preliminary results for the year to 31 March 2007 Supplementary Information Meadowhall, Sheffield Value £1.7 billion Meadowhall is one of the largest and most successful shopping centres in the UK – a prime super-regional 1.5m sq ft retail and leisure destination in a densely populated catchment area. Site area 191 acres (of which 74 acres The two level, fully enclosed mall with excellent transport undeveloped) links continues to be attractive to both retailers and their 216 shop units, 10 anchor customers. For 80% of the multiple retailers at stores, 11 screen Warner Meadowhall, their unit is in the top 10 performing outlets of Village cinema, 25 their company. speciality kiosks, 23 mall kiosks The major refurbishment programme is well advanced and 30 restaurants and cafes the final phase is expected to complete in October 2007. (including Oasis food court) seating for some 3,300 The reconfigured area (formerly occupied by Sainsbury’s) 25 million visitors per including the new mall will complete in August. The two annum – 800,000 per week new stores have been handed over to Primark and Next at peak time for fitting out. Lettings of the other units are progressing Direct access to junction 34 well. of M1 motorway Free parking for over The Centre is run by a renowned and innovative 12,000 vehicles management team whose proactive approach to asset On site transport management has maintained Meadowhall’s high quality interchange with bus, train shopping experience while keeping a focus on and supertram services environmental factors. The team has won many national www.meadowhall.co.uk and international awards, including the ICSC ‘Maxi Anchor stores: Awards’ for Best Single Event and PR/Media Relations for BHS the ‘BBC Flashmob event’, from BITC for Employability, Boots Energy Efficiency and Waste Management and from Debenhams BCSC for Customer Service. H&M House of Fraser Marks & Spencer Next Primark Sports World WH Smith Freehold 100% owned Rent passing £77m pa Average rent £58.87 per sq ft Weighted average lease term including breaks 13.7 years The British Land Company PLC 3 Preliminary results for the year to 31 March 2007 Supplementary Information IN TOWN RETAIL PORTFOLIO British Land’s share This portfolio includes shopping centres, department £2.1 billion stores and high street shops in selected locations in major Value £2.8 billion towns and cities. 7 Shopping Centres 3.7m sq ft Eastgate Shopping Centre, Basildon 38 Department Stores The Eastgate Centre provides the prime retail offer for 5.6m sq ft Basildon town centre. The covered centre was developed 53 High Street Shops in two phases in 1980 and 1985 with the second phase 11 Supermarkets providing two trading levels and a 2,000 space Major Tenants: multi-storey car park. In addition to 700,000 sq ft of retail space there are three blocks of offices totalling Argos 127,000 sq ft. ASDA The centre is anchored by ASDA and Debenhams. Debenhams Construction work is under way to create a new 17,000 sq House of Fraser ft store pre-let to H&M which is due for completion in the Marks & Spencer summer 2007. Miss Selfridge A comprehensive refurbishment of the centre has New Look commenced which will provide a contemporary shopping Next environment including new and expanded customer Primark facilities. River Island Sainsbury’s The Peacocks, Woking Somerfield A long leasehold covered shopping mall of 417,890 sq ft TK Maxx on three trading levels built around a central atrium. Top Shop Completed in 1992, the scheme is the prime retail Woolworths destination in the town. There is a direct link to the Rhoda Predominantly freehold McGaw Theatre and 6-screen cinema complex, and Total rent passing parking for 2,500 cars. £133m pa, British Land’s Debenhams anchors the scheme with a 137,000 sq ft share £101m pa store. There are a further 77 units, plus a 540 seat food Weighted average lease court. term including breaks 18.6 years, to expiry 20.2 years Bon Accord and St Nicholas Centres, Aberdeen The Scottish Retail Property Limited Partnership (a joint venture with Land Securities) owns these shopping malls in the principal retail centre for north-east Scotland. Combined they provide more than 80 retail units with leisure and office facilities.
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