British Land sees ‘notable improvement’ as 85% of rents collected

British Land has collected 85% of June’s rents, as it hails a “notable improvement in activity”. However the update, published to coincide with its AGM, showed marked differences in the fortunes of the different elements of the British Land estate. While 99% of office rents were paid, just 71% of retail rents were collected. British Land noted that retail rents paid were 24 percentage points ahead of December, and 17 above March. It added that footfall and sales had risen across the retail portfolio to 86% and 94% of pre-pandemic levels in the seven weeks since the first easing of lockdown restrictions. Chief executive Simon Carter said: “With lockdown restrictions lifting, we have seen a notable improvement in activity across our markets and our business is performing well. “On our retail parks, footfall and sales are close to pre-pandemic levels, rents are stabilising with recent deals in line with March ERV, and there are indications that retail park values are starting to rise as more investors target the market.” Other elements of the business were also showing recovery, he said. “At Storey, our flexible workspace offer, activity is above pre-pandemic levels. Elsewhere on our Campuses, we see good occupier interest for new and refurbished space, which we expect to be supportive of office rents and values as we move through the year.” British Land added that it had committed to its first build-to-rent residential building in Aldgate. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews