Woolwich Estate acquired by British Land property company for over £100m
British Land has acquired the Woolwich Estate in South East London, covering 4.9 acres, for a headline price of £103m representing a net initial yield of 4.1 per cent.
It builds on the firm’s portfolio of places benefitting from the Elizabeth Line, including Broadgate, Paddington Central and Ealing Broadway, providing potential to drive returns through placemaking, asset management and development knowledge.
The Woolwich estate covers 360k sq ft of space in central Woolwich. Predominantly retail, it includes over 50k sq ft of residential, and 3,000 sq ft of office space.
The area is already benefiting from significant regeneration, led by the Elizabeth Line, launching from Woolwich in December 2018. It aims to reduce journey times to Canary Wharf and Bond Street to eight and 22 minutes respectively.
To coincide with this, 6,000 new homes have been built or are in the pipeline. The estate is currently 95 per cent occupied, with an average lease length of under four years, and average rent of £17-psf, providing British Land with an opportunity to strengthen the offer.
Charles Maudsley, head of retail, leisure and residential at British Land, said: “This acquisition provides a unique opportunity to create a thriving retail-anchored centre, benefiting from a mix of uses in a rapidly regenerating part of London.
“We have a long-term vision for the estate which will deliver space that works for retailers and their customers; which generates clear benefits for local communities and drives value for British Land.”
The Woolwich Estate comprises 56 retail units and has footfall of six million.
Coinciding with the arrival of the Elizabeth Line, Greenwich Council is investing £31m to deliver a new ‘creative district’ which will aim to transform five historic buildings into theatre and concert space, with offices and restaurants.