British Land Company PLC · LSE:BLND
British Land — Investor Day (September 2011)
94 slides from British Land's investor day presentation, Sep 21, 2011
Slide 1: Offices Event
OFFICES EVENT 21 SEPTEMBER 2011 www.britishland.com
Slide 2: Tim Roberts, Head of Offices
§ British Land TIM ROBERTS Head of Offices
Slide 3: Agenda
Agenda d Office Portfolio and Outlook Tim Roberts,, Head of Offices City Portfolio Matthew Pinsent, Head of City Asset Management West End Portfolio David Lockyer, Head of West End Asset Management Break Developments Nigel Webb, Head of Development Questions & Answers City Leasing Paul Burgess, Burg
Slide 4: Key Messages
Key Messages • Significant g achievements over the last 5 years y • Created a strong platform for our office business • Confident fd about b f future prospects off the h office ff portfolio f l Confident About Future Performances 4
Slide 5: Key Messages
Key Messages • Significant g achievements over the last 5 years y – More balance between City and West End – Improved quality of assets • Created a strong platform for our office business – Customer demand creating strong and sustainable income flows – Well timed and profitable developments underway
Slide 6: Delivering Superior Total Returns
Delivering l Superior Totall Returns 1 Sustainable 1. S t i bl and d growing i income i 2. Assets which p protect and grow g capital p value 3. Creating incremental value 4. Controlling costs 5. Exploiting our scale and financial strength British Land’s Objective is to Deliver Superior Total Returns
Slide 7: Clear and Relevant Office Strategy
Clear l and d Relevant l Office ff Strategy 1 Play the office cycle more aggressively 1. 2. Focus on London 3. Increased investment in the West End 4. Upgrade the quality of our assets 5. Improve customer service 6. Integrate office investment and development teams Well Positioned to Perform 7
Slide 8: A More Balanced Portfolio – Improved Balance Between City and West End
A More Balanced Portfolio – Improved d Balance l Between City and d West End d Office Portfolio Value £bn 6 City West End Provincial 5 15% 4 39% 3 37% 2 81% 35% 1 60% 58% 63% 0 Jun‐06 Dec‐09 Jun‐11 Jun‐11 (Pro forma) West End to Increase from 15% to 39% 8
Slide 9: Increased Investment in the West End Through Development
Increased Investment in the West End Through h h Development l York House, W1 10 & 20 Triton Street, NW1 North East Quadrant, NW1 £800m of West End Developments 9
Slide 10: Increased Investment in the West End Through Acquisitions
Increased Investment in the West End Through h h Acquisitions 39 Victoria Street, SW1 10 Portman Square North East Quadrant, NW1 £300m of West End Acquisitions 10
Slide 11: Reduced Investment in the City Through Disposals
Reduced d d Investment in the h City Through h h Disposals l 175 Bishopsgate, EC2 Plantation Place, EC3 The Willis Building, EC3 £2bn of Disposals Between 2006‐8 at Average c.5% Yield 11
Slide 12: Improving the Quality of Our Assets – Transforming Regent's Place
Improving the Quality of Our Assets – Transforming f Regent’s ’ Place l • Estate will grow from 1.0m 1 0m sq ft to 2.0m sq ft • 500,000 sq ft of lettings since Dec‐09 Dec 09 – Key lettings to Aegis, Lend Lease and Debenhams • Significant ERV outperformance – Regent’s Place +15.5% – IPD West End +12.
Slide 13: Improving the Quality of Our Assets – Revitalising Broadgate
Improving the Quality of Our Assets – Revitalising l Broadgate d • UBS retained as the anchor tenant – Committed to new 700,000 sq ft building – 755,000 sq ft of lease extensions • £40m invested in public spaces • Completed 201 Bishopsgate and Broadgate Tower • Started 5 Broadgate and 199 Bishopsgat
Slide 14: Portfolio Well Positioned – Improving Performance vs IPD
Portfolio Well Positioned – Improving Performance f vs IPD Relative Office Total Return1 Relative Office ERV Growth1 % % 8 130 vs. IPD London Offices 7 BL London Offices vs IPD All Offices vs. 6 120 IPD London Offices 5 IPD All Offices 4 110 3 2 100 1 0 90 ‐1 2006 2007 2008 2009 2010 2011 5 year 3 y
Slide 15: Portfolio Well Positioned – Well Located, Modern Office Buildings
Portfolio Well Positioned – Wellll Located, d Modern d Office ff Buildings ld Office Value By Age % 30% 29% 37% % 4% 5‐10 Years Old 60% of London Offices Recently/Currently Under Development 15
Slide 16: Attracting and Retaining Customers Drives Strong Leasing Activity
Attracting and Retaining Customers Drives Strong Leasing Activity • British Land accounts for c.20% % of central London take‐up p since Dec‐09 ‘000 Sq ft City West End Total New lettings (inc. pre‐lets) 1,421 513 1,934 Lease Renewals 221 129 350 Total 1,642 642 2,284 2.3m sq ft of New Lettings/Renew
Slide 17: Portfolio Well Positioned – Strong and Secure Income Flow
Portfolio Well Positioned – Strong andd Secure Income Flow l • Lettings at an average term of 16.6 years • Lease regears significantly improved income profile Dec 09 Jun11 Change Occupancy rate 84.4% 97.8% 13.4% Lease length 8.8 yrs 9.3 yrs +0.5 years Income expiring: June 2011‐141 16.8% 5.8% ‐11.0%
Slide 18: Significant, Well Timed Development Programme
Significant, f Wellll Timed d Development l Programme BL Committed Sq ft As at 30 June 2011 Capital £m1 ‘000 PC 5 Broadgate, EC2 290 700 Q4 2014 The Leadenhall Building, B ilding EC3 240 610 Q2 2014 NEQ, Regent’s Place, NW1 326 500 Q2 2013 10 Portman Square, W1 131 158 Q2 2013 199 Bishopsgate, EC2 4
Slide 19: Confident About the Future – London Office Outlook
Confident About the Future – London d Office ff Outlook l k London Office Vacancy Rates1 % 1992 Peaked at 18.7% City • Total vacancy rates low 20 10.0% West End across London at 6.0%, 2003 Peaked at 18 13.5% City with Grade A at 3.4% 16 8 2% W 8.2% West EEnd d 2009 Peaked at • Structural demand driv
Slide 20: Confident About the Future – Significant Active Requirements
Confident About the Future – Significant f Active Requirements City Sq ft West End Sq ft Schroders 250,000 Google 700,000 Jardine Lloyd Thomson 200,000 Aga Khan 300,000 ING 175 000 175,000 Time Warner 250 000 250,000 Nabarro 125,000 Apple 150,000 Royal Sun Alliance 125,000 Arcadia 130,000 Prudential
Slide 21: West End Supply Pipeline Remains Limited
West End d Supply l Pipeline l Remains Limited d West End Development Pipeline1 M sq ft 5 Long‐term average take up 4 3 Unlikely Possible 2 Likely Definite 1 0 2011 2012 2013 2014 2015 2016 1 Knight Frank Insufficient Supply to Satisfy Even Low Demand 21
Slide 22: City Supply Pipeline Being Delayed
City Supply l Pipeline l Being Delayed l d City Development Pipeline1 M sq ft 6 Long‐term 5 average take up 4 Unlikely 3 Possible Likely 2 Definite 1 0 2011 2012 2013 2014 2015 2016 1 DTZ Insufficient Supply to Satisfy Even Low Demand 22
Slide 23: Confident About the Future – Superior Returns From Existing Assets
Confident About the Future – Superior Returns From Existing Assets • Portfolio topped‐up yield of 6.1% • Development yield of 6.5% • Portfolio average ERV £44 psf ‐ now only 4% over‐rented City West End At 30 June 2011 BL Prime1 BL Prime1 Average contracted rent £46psf N/A £42psf N/A Average ERV £44
Slide 24: Confident About the Future – Incremental Value from Development
Confident About the Future – Incrementall Value l ffrom Development l • Over 50%%p profitablyy pre‐let/sold: p / terms accretive to investment case and accretive to June valuations • 62% of costs already tendered • £164m of unrealised profit at today’s rents and yields • Creating high h h quality, l
Slide 25: Strong Experienced Team
Strong Experienced d Team David Lockyer Matthew Pinsent Nigel Webb Paul Burgess James Danby Adrian Penfold Charles Butlers Nicola Thomas James Taylor Justin Snoxall 25
Slide 26: Key Messages
Key Messages • Significant g achievements over the last 5 yyears • Created a strong platform for our office business • Confident about future prospects of the office portfolio A Strong Platform for Future Growth 26
Slide 27: David Lockyer, Head of West End Office Asset Management
D id LLockyer David k Head of West End Office Asset Management
Slide 28: Introduction to West End Offices
Introduction d to West End d Offices ff • We have transformed our West End portfolio p • Created a strong platform and outperformed • We are well positioned for growth An Important and Growing Part of British Land’s Office Portfolio 28
Slide 29: Growing our West End Exposure
Growing our West End d Exposure West End Rental Growth vs RPI West End Total Returns vs IPD Index Annualised Total Returns 1994 = 100 250 16 IPD West End RPI IPD West End 14 IPD All Prop 12 200 10 8 6 150 4 2 100 0 1994 1998 2002 2006 2010 15 years 10 years 5 years 1 year West End Delivers Long Term
Slide 30: Growing our West End Portfolio
d Portfolio Growing our West End f l Portfolio Value: 2009 £0.8bn 2010 £1.0bn £1 0b 2011 £1.3bn Proforma £1.7bn Deploying Capital into our Development Pipeline 30
Slide 31: Transforming Regent's Place
Transforming f Regent’s ’ Place l Transformed into a Vibrant 2.0m sq ft Mixed‐Use Estate 31
Slide 32: Transforming Regent's Place – Assembling the Site
Transforming f Regent’s ’ Place l – Assembling bl theh Site Warren Street Great Portland Street Anchoring Regent’s Place to the West End 32
Slide 33: Transforming Regent's Place – High Quality New Buildings
Transforming Regent’s Place – High h Quality l New Buildings ld 10 and 20 Triton Street The Quality of Design is Important to our Customers 33
Slide 34: Transforming Regent's Place – High Quality New Buildings
Transforming Regent’s Place – High h Quality l New Buildings ld Well Considered and Careful Design Does Not Date 34
Slide 35: Transforming Regent's Place – High Quality Existing Buildings
Transforming Regent’s Place – High h Quality l Existing Buildings ld 350 Euston Road 1, 4, 7 Triton Square Our Buildings Have Enduring Occupier Appeal 35
Slide 36: Transforming Regent's Place – Upgrading the Public Spaces
Transforming Regent’s Place – Upgrading d theh Public bl Spaces Using Public Art and Outdoor Spaces to Enliven the Estate 36
Slide 37: Transforming Regent's Place – Making the Estate Come to Life
Transforming Regent’s Place – Making k theh Estate Come to Life f Meeting Customer Requirements for Years to Come 37
Slide 38: Engaging Customers and Communities
Engaging Customers and d Communities “British Land were the most willing to talk about ways in which we could reduce costs. They are the best of all the landlords that we deal with .” ATOS Origin i i “British Land is the best “They are very good at understanding our business needs….we landlord ‐ the
Slide 39: Reaping the Rewards – Strong Lease Up Success
Reaping the h Rewards d – Strong Lease Up Success Regent’s Place: New Lettings since Jan 2010 Lease Length to First Space Let Sq Ft Expiry Years Break Years Aegis Plc 118,007 20.0 none LendLease 80,325 15.5 10.5 Gazprom 89,220 15.0 10.0 Ricoh 43,161 15.0 10.0 Dimensional Fund Advisors 18,998 10.0 no
Slide 40: Reaping the Rewards – Retaining Existing Customers
Reaping the h Rewards d – Retaining Existing Customers Regent’s Place Lease Regears Agreed Last Six Months Previous Lease length New Lease Previous Rent New Headline Sq Ft Years Length Years £psf Rent £psf General Medical Council 34,911 13 18 37 43 Regus 17,716 1 6 50 50 Atos Origin 60,977 1 11 48 4
Slide 41: Reaping the Rewards – Regent's Place
Reaping the h Rewards d – Regent’s ’ Place l • Nearlyy fullyy occupied p Top Ten Customers Contracted income (99% occupancy) HM Government 25% Aegis Group 11% • Average lease length 9.3 years Gazprom 10% (up from 7.5 years in Dec 09) JPMorgan 8% Lend Lease 8% • 3.3% income expiring over next 3 ATOS
Slide 42: Reaping the Rewards – Strong Rental Value Growth
Reaping the h Rewards d – Strong Rentall Value l Growth h Regent’s Place ERV growth vs IPD West End Index 2000 = 100 140 Regents Place IPD West End 130 120 110 100 90 80 70 60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6m‐ 2011 Rental Value Growth Outperforming the West End 42
Slide 43: Working with the Portman Estate – Revitalising Portman Village
Working with the Portman Estate – Revitalising l Portman Village ll York House Portman Square Marble Arch House 90,000 sq ft offices 113,000 sq ft offices 60,000 sq ft offices 42,000 sq ft residential/retail 20,000 sq ft residential/retail 26,000 sq ft residential/retail Completed 2006 25,000 sq ft
Slide 44: Our West End Portfolio – In a Good Place
Our West End d Portfolio f l – In a Good d Place l • High g qqualityy West End portfolio p Relative Capital p Return % • Strong and secure income 5 West End Relative – 8.5 yyears average g lease length g 4 – 10.5% income expiry over next 3 years – 99% occupancy 3 2 • Outperformed IPD West End Capita
Slide 45: Well Positioned for Growth – Capturing Rental Growth
Wellll Positioned d for f Growth h – Capturing Rentall Growth h • British Land West End contracted rents 1% % below ERV • Positive outlook for West End rents • Ability to capture rental growth – Rent reviews and lease expiry profile – Lease regears – Development programme Well Positioned to Capture
Slide 46: Well Positioned for Growth – Regent's Place is Still Maturing
Well Positioned for Growth – Regent’s ’ Place l is Stillll Maturing • Scope p to close the yyield gap g p vs p prime West End • Further scope to close the rental gap vs West End June 2011 Regent’s Place Prime1 Topped‐up Net Initial Yield 5.8% 4.25% Average ERV (ex. Euston Tower) £47psf £95psf 1Sourc
Slide 47: Well Positioned For Growth – Proposed Developments
Well Positioned For Growth – Proposedd Developments l Current Potential Opportunities for the Next Development Cycle 47
Slide 48: Well Positioned For Growth – Proposed Developments Victoria Street
Well Positioned For Growth – Proposedd Developments l 39 Victoria Street Adding to Our Development Pipeline 48
Slide 49: Conclusion
Conclusion l • Successfullyy transformed our West End p portfolio • Strong asset management track record • Confident in the future Well Positioned to Grow and Outperform 49
Slide 50: Matthew Pinsent, Head of City Office Asset Management
MATTHEW PINSENT Head of City Office Asset Management
Slide 51: Revitalising and Repositioning Our City Portfolio
Revitalising l and d Repositioning Our City Portfolio f l • Physically y y enhancingg our assets • Driving income through successful leasing activity • Actively managing our customer relationships 51
Slide 52: Redeveloping Buildings
d l Redeveloping ld Buildings Over 50% of our City Portfolio Now Modern Grade A Portfolio 52
Slide 53: Enhancing the Public Realm
Enhancing h the h Public bl Realm l Finsbury Avenue Square £40m of Public Realm Improvements at Broadgate 53
Slide 54: Enhancing the Public Realm
Enhancing h the h Public bl Realm l Exchange Square £40m of Public Realm Improvements at Broadgate 54
Slide 55: Driving Income Through New Lettings – Recent Developments
Driving Income Through New Lettings – Recent Developments l • Keyy occupiers p – Macquarie, Markit, Mitsubishi • Total lettings g since Januaryy 2010 N picture New i t – 372,000 sq ft – Annual income £15.7m – Weighted g average g lease length g 15.1 years Ropemaker Place Ropemaker Place Now Fully Le
Slide 56: Driving Income Through New Lettings – Recent Developments
Driving Income Through New Lettings – Recent Developments l • Keyy occupiers p – Bank of Nova Scotia, Alpari, Banco Itau, William Blair • Total lettings since January 2010 – 140,000 sq ft – Annual income £6.1m – Weighted average lease length 9.8 years 201 Bishopsgage & Broadgate Tower Broadgate Now
Slide 57: Driving Income Through New Lettings – Development Pre-Lets
Driving Income Through New Lettings – Development l Pre‐Lets • Major j p pre‐lets on 60% % of Cityy development p pipeline pp • 700,000 sq ft to UBS for 18.2 years • 191,000 sq ft to AON on a long lease – In addition, agreed 85,000 sq ft of option space Total of 1.4m sq ft of New City Lettings since
Slide 58: Meeting our Customers' Needs
Meeting our Customers’’ Needs d “They They are a five-star five star landlord that values highly the relationship “They understand our between themselves and their requirements. They are client occupiers. occupiers.” Mayer Brown International LLP f forwardd thinking hi ki andd are a landlord of choi
Slide 59: Retaining Long Term Customers
Retaining Long Term Customers From To Henderson Global Investors 4 Broadgate 201 Bishopsgate ‐ Annual rent (100% share) £8.4m £6.5m ‐ Lease length 3 5 years 3.5 20 0 years 20.0 From To Mitsubishi UFJ/BTMU 6 Broadgate Ropemaker Place ‐ Annual rent (100% share) £4.9m £9.5m ‐ Lease length 4.5 years 20.
Slide 60: Securing Income – Retaining UBS at Broadgate
Securing Income – Retaining UBS at Broadgate d • Not jjust another leasingg deal • Years of proactive planning • A complex transaction – Asset management – Construction – Planning – Corporate finance A Major Turning Point for Broadgate 60
Slide 61: Securing Income – Retaining UBS at Broadgate
Securing Income – Retaining UBS at Broadgate d • 5 Broadgate development – 700,000 sq ft new building – £54.50 psf; RPI annual uplifts; 18 month rent free – 18.2 year average term • Extending existing leases – 755,000 sq ft leases – Secures additional £24m of total income Extends Broadgate’s Average
Slide 62: Retaining Customers at Broadgate
Retaining Customers at Broadgate d T Term C Certain t i Annual Rent Sq Ft Old (Years) New (Years) BL Share B i Barings (155 Bishopsgate) Bi h t ) 80 500 80,500 92 9.2 15 5 15.5 £1 8 £1.8m Axa (155 Bishopsgate) 29,000 9.2 15.5 £0.6m Close Brothers (10 Exchange Sq) 29 000 29,000 06 0.6 55 5.5 £0 7m £0
Slide 63: In a Better Place – City Office Investment Portfolio
In a Better Place l – City Office ff Investment Portfolio f l • Occupancy increased from 90 90.5% 5% to 97 97.1% 1% • 3.4% of income expiring in the next 3 years (IPD: 24.3%) % of investment Topped‐up Capital Lease At 30 Jun 2011 portfolio NIY % Value £psf Length yrs Long‐term Income (over 10 years)
Slide 64: Delivering Future Performance
Delivering l Future Performance f • Growingg income through g lettingg development p pipeline pp • Asset enhancement – particularly Broadgate South • Significant benefits from Crossrail Strong Returns from Future Asset Management 64
Slide 65: Letting Our Development Pipeline
Letting Our Development l Pipeline l • 1.4m sq q ft of office space p under development p • Over 60% pre‐let • Delivery well timed – 2012 to 2014 • Total future income £41 million £41m of Future Rent from Committed City Developments 65
Slide 66: Enhancing Broadgate South
Enhancing h Broadgate d South h • 1.2m sq q ft of offices and retail • Average capital value £538 psf • 7.7% net initial yield • Average lease length 4.0 years Significant Asset Enhancement Opportunities 66
Slide 67: Asset Enhancement Opportunities – Broadgate Circle
Asset Enhancement h Opportunities – Broadgate d Circle l • Proposals p for food and beverage destination • Actively managing existing retail leases • Further public realm improvements • Refreshing Broadgate’s brand Reinforcing Broadgate as a Best‐in‐Class Business Destination 67
Slide 68: Enhancing Broadgate South – Offices
Enhancing h Broadgate d South h ‐ Offices ff • High g specification p of original g build • Opportunities to deliver value through – Regearing existing leases – Refurbishment/redevelopment • Potential net floor area gains Potential to Create Further Value 68
Slide 69: Significant Benefits from Crossrail
Significant f Benefits f ffrom Crossraill Direct Journey Times Heathrow to Bond St 26 mins Heathrow to Liverpool St 32 mins Most Significant Transport Project Since the Jubilee Line Extension 69
Slide 70: Significant Benefits from Crossrail
Significant f Benefits f ffrom Crossraill • Major j benefits to Cityy transport • Ticket halls at Liverpool St and Moorgate • Benefits to Broadgate and Ropemaker k Increases and Broadens Appeal of our City Assets 70
Slide 71: Confident About Future Portfolio Performance
Confident fd About b Future Portfolio f l Performance f • Shaped p a high g qquality, y, well let p portfolio • Income growth through – Lettingg development p p pipeline p – Building on relationships with customers • Significant asset enhancement opportunities – Next phase of Broadgate – Benefits of
Slide 72: Nigel Webb, Head of Developments
NIGEL WEBB Head of Developments
Slide 73: Introduction
Introduction d • We expect p strongg returns because: – Significant programme – committed to invest £1.1bn – Well timed for occupier and construction markets – Steps in place to manage risk and ensure well balanced programme – Delivering well conceived buildings in the right locations – Experienced
Slide 74: Experienced Team – Senior Management
Experienced d Team – Senior Management Adrian Penfold Paul Burgess James Danby Richard Elliott Robert Samuel Mike Rayner Planning Leasing Construction Development • Over 10 years average service at British Land • Strong industry profiles • Proven track record in delivery Strong and Experienced Devel
Slide 75: Strong London Development Track Record
Strong London d Development l Trackk Record d • Largest g Central London office developer:p 4m sq q ft completed p since 2004 • Strong leasing track record: 54% of schemes were pre‐let; typical lease terms of around 20 years • Strong environmental record 35 Basinghall Plantation Willis St & One 201
Slide 76: Significant Development Programme
Significant f Development l Programme • Largest g committed central London office development p programme p g • 2.2m sq ft of prime office space in the West End and City under construction • British B iti h LLand d iinvestment t t off £1 £1.1bn 1b NEQ 10 Portman Sq Marble Arch Hse 5 Broadgate Leaden
Slide 77: Well Timed – Taken Decisions Early
Wellll Timed d – Taken k Decisions Early l • Taken earlyy decisions to commit to development p • Optimised designs • Secured all necessary approvals in good time • Secured new West End opportunities All Six Main Projects Now on Site 77
Slide 78: Well Timed for the Market
Wellll Timed d ffor the h Market k City and West End Office Rents 2009 = 100 160% Leadenhall 199 Bishopsgate Marble Arch House 10 Portman Square 140% NEQ 199 Bishopsgate 120% Leadenhall Marble Arch House City Decision to Proceed 10 Portman Square West End Practical Completion NEQ 100% 2009 2010 2011
Slide 79: Well Timed – Fixing Construction Cost at the Right Time
Wellll Timed d – Fixing Construction Cost at the h Right h Time Office Tender Price Index 1998 = 100 450 350 250 150 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: David Langdon ‐ Central London Costs Today At 2005 Levels 79
Slide 80: Well Timed – Fixing Construction Costs Early
Wellll Timed d – Fixing Construction Costs Early l Decision D i i tot Construction C t ti Proceed Value Placed Leadenhall July 2010 £261m 100% 10 Portman Square q April p 2010 £47m 100% 8% 199 Bishopsgate Nov 2010 £22m 100% NEQ March 2010 £177m 76% 25% 5B Broadgate d t M h 2010 March £210 £210m 9% 6
Slide 81: Managing Risk and Creating a Balanced Programme
Managing Riskk and d Creating a Balanced l d Programme Capital Weighting Commercial Floor Space £m Sq ft ‘000 1,400 1,600 1,200 1,400 Speculative p JV Partners 1,200 567 Debs 1,000 BL Share 1,000 AON 800 555 UBS 800 191 600 600 400 400 555 700 441 200 495 200 0 145 0 City West End City West End (BL
Slide 82: Creating Incremental Value – Residential Development
Creating Incrementall Value l – Residential d l Development l • Alongside g West End office developments p – residential adds incremental value • 160,000 sq ft of residential – NEQ Q – Baker St – Marble Arch House • £138m end value • £94m (68%) residential pre‐sales to date • Leveraging mixed use de
Slide 83: Well Conceived Building – North East Quarter
Wellll Conceived d Building ld – North h East Quarter • Completes p the final p phase of Regent’s Place – 340,000 sq ft offices – 120,000 sq ft residential – 40,000 sq ft retail & ancillary • Floor plates from 3,500 ‐ 38,000 sq ft • £326m development cost • 145,000 sq ft pre‐let to Debenhams on larg
Slide 84: Well Conceived Building – North East Quarter
Wellll Conceived d Building ld – North h East Quarter 84
Slide 85: West End Office Development – Portman Square
West End d Office ff Development l – 10 Portman Square • 133,000 , sq q ft Office & Retail fronting Portman Square • Well configured floor plates • £131m £131 ddevelopment l t costt • 25,000 sq ft residential and retail at 95/99 Baker St successfully f ll pre‐sold ld • Completion in Q2 2013 85
Slide 86: West End Office Development – Portman Square
West End d Office ff Development l – 10 Portman Square 86
Slide 87: West End Office Development – Marble Arch House
West End d Office ff Development l – Marble bl Arch h House • 76,000 76 000 sq ft Office & Retail • 10,000 sq ft of private residential • 11,000 sq ft typical floor plate • £58m development cost • Vacant possession secured and pre development works started pre‐development • Completion on programme f
Slide 88: City Office Development – The Leadenhall Building
City Office ff Development l – The h Leadenhall d h ll Building ld • Joint venture with Oxford Properties • 610,000 sq ft over 47 floors • Floor plates from 6,000 ‐ 21,000 sq ft • Heads of Terms with AON for 191,000 sq ft across levels 4‐13 – Options over further 85,000 sq ft • £480m development cos
Slide 89: City Office Development – The Leadenhall Building
City Office ff Development l – The h Leadenhall d h ll Building ld 89
Slide 90: City Office Development – Bishopsgate
City Office ff Development l – 199 Bishospgate h • Joint venture with Blackstone • 142,000 sq ft major refurbishment and repositioning • 13,500 sq ft f average fl floor plate l • £92m development cost (BL Share £46m) • Strip p out completed p and refurbishment underway • Completion Q3 2012 90
Slide 91: City Office Development – Bishopsgate
City Office ff Development l – 199 Bishospgate h 91
Slide 92: City Office Development – Broadgate
City Office ff Development l – 5 Broadgate d • Joint Venture with Blackstone • 700,000 sq ft net office space • Fully pre‐let to UBS on excellent terms – £54.50 £54 50 psf rising with RPI (0‐4%pa) – 18.2 years with 18 months rent free • £580m development cost (BL Share £290m) • Demolition commenced
Slide 93: Central London Development – Strong Returns Expected
Central London Development – Strong Returns Expected d • Committed developments already contributed £99m • £164m unrealised profit based on valuers’ assumptions Unrealised profit illustration1 Average Valuation Yield £m 6 00% 6.00% 5 75% 5.75% 5 50% 5.50% 5 25% 5.25% 5 00% 5.00% (10)% 22 65 112 164
Slide 94: Disclaimer
Disclaimer l The information contained in this presentation has been extracted largely from the First Quarter Results Announcement for the three months ended 30 June 2011. This presentation may contain certain “forward‐looking” statements. By their nature, forward‐looking statements involve risk and