British Land has exchanged contracts to sell Debenhams flagship store on Oxford Street to a private investor for £400m, in one of London's biggest deals since the EU referendum.
The seven storey building at 334-348 Oxford Street, near Bond Street station, is let in its entirety to Debenhams until 2039, and recently underwent a dramatic £25m revamp.
In addition, British Land said it has exchanged on £99m of further retail disposals since 31 March 2016, including £79m of superstores, 3.1% ahead of March valuations. These transactions bring total retail disposals since the year end to £499m.
Since the EU Referendum, British Land has exchanged 11 long term retail leases totalling 50,000 sq ft and £2.1m of rent on terms agreed prior to the Referendum.
The leases are spread across our Regional and Local portfolios to a range of occupiers including Yo! Sushi, Nando's, River Island, Pret A Manger, Byron and Waterstones. In aggregate these lettings are 4.7% ahead of March 2016 ERVs. A further 210,000 sq ft of Retail lettings are under offer.
Chris Grigg, chief executive said: "The disposal of Debenhams on Oxford Street reflects our strategic focus on multi-let assets within the Retail portfolio. British Land has entered this period of post-referendum uncertainty in a robust position."
"We have a strong, resilient business with a clear strategy. We have a modern portfolio which is well suited to current and future customer needs. The portfolio is 99% occupied with a wide range of quality occupiers on long leases. Our finances are strong with an LTV of 29.7%, proforma for exchanged disposals, and the group has no refinancing requirement for over four years. Our speculative development commitments are low at 4% of the portfolio and we have considerable flexibility in our development pipeline."