British Land Company PLC (LSE:BLND) has provided upgraded guidance for its retail parks portfolio prior to today’s asset tour for investors and analysts at the Nugent Shopping Park in Orpington.
Strong demand and limited supply have led to 99% occupancy across British Land’s portfolio, which is giving the group an upper hand in pricing negotiations.
In the five months to 30 August 2023, the group leased 511,000 square feet at 15.3% above estimated rental value (ERV), with 677,000 square feet currently under offer at 19.4% above ERV.
Key deals driving this momentum include five deals with Frasers Group, a letting to Primark at Glasgow Fort, and a large-scale letting to B&M at Teesside Park.
On the back of these deals, British Land has upgraded its ERV growth guidance for 2024 from 2-4% to 3-5%.