PADDINGTON CENTRAL 5 JULY

Transcription

1 PADDINGTON CENTRAL 5 JULY

2 Disclaimer This presentation may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. British Land does not undertake to update forward-looking statements to reflect any changes in British Land s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. This presentation is made only to investment professionals as defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ('the FP Order'). The content of this presentation has not been approved by a person authorised under the Financial Services and Markets Act 2000 ( FSMA ). Accordingly, this presentation may only be communicated in the UK with the benefit of an exemption set out in the FP Order. An investment professional includes: (i) a person who is authorised or exempt under FSMA; and (ii) a person who invests, or can reasonably be expected to invest, on a professional basis for the purposes of a business carried on by him; and (iii) a government, local authority (whether in the United Kingdom or elsewhere) or an international organisation; and (iv) any director, officer, executive or employee of any such person when acting in that capacity. This presentation is published solely for information purposes. This presentation does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. The distribution of this presentation in jurisdictions other than the UK may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. This presentation has been prepared for the purpose of complying with English law and the City Code and the information disclosed may not be the same as that which would have been disclosed if this presentation had been prepared in accordance with the laws of jurisdictions outside the UK. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere. By viewing the presentation and/or accepting or accessing this document you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that: (i) you have read and agree to comply with the contents of this notice; and (ii) you are an investment professional as defined in the FP Order. 2

3 Highlights Acquisition of major West-End, office-led estate Strong Property Fundamentals attractive mix of modern well-let buildings and development sites significant upside from asset management estate will benefit from improving transport infrastructure 100 % in line with strategy increases London weighting of business shifts office business further West exploits our scale and knowledge of large London estates adds to development pipeline Financially attractive initial yield of 5.3% rises to 6.2% when fully let (excludes development) development opportunities with double digit IRRs (unlevered) 3

4 Delivering Future Growth Focus on London and the South East Paddington Central Aldgate Ealing Broadway Clarges Eden Walk Surrey Quays & Harmsworth Quays Paddington Central Recent acquisitions BL assets/concentration Continue to move West Transport inter-changes London residential Up and coming areas Estates and mixed use schemes Development 4

5 Paddington Location Paddington Central 2. Paddington Station 3. Paddington Basin 5

6 Paddington Central Estate Key: BL ownership Non BL ownership Development sites (355,000 sq ft) + Crossrail box below (80,000 sq ft) Multi-let offices 268,000 sq ft Multi-let offices 143,000 sq ft 200 residential units sold on long leases; retail at ground floor FIVE KINGDOM STREET FOUR KINGDOM STREET ONE KINGDOM STREET ONE SHELDON SQUARE New Hammersmith & City line station and access to Crossrail 206 room 4-star hotel (111,000 sq ft) Non BL ownership 88,000 sq ft retail (16 units) around Sheldon Square 6

7 Paddington Central Existing Properties 3 SHELDON SQUARE SHELDON SQUARE RETAIL 2 KINGDOM STREET 3 KINGDOM STREET 7

8 Paddington Central Key Occupiers Top 8 tenants represent c.80% of the income Occupier Building Area sq ft Contracted rent pa m Unexpired lease term Astra Zeneca 2 Kingdom Street 76, yrs Nokia 2 Kingdom Street 60, yrs Rio Tinto 2 Kingdom Street 26, yrs Statoil 2 Kingdom Street 26, yrs Accor 3 Kingdom Street 111, yrs Cerner 3 Sheldon Square 28, yrs Kingfisher 3 Sheldon Square 55, yrs Prudential 3 Sheldon Square 25, yrs Total Estate 610, yrs 8

9 Paddington Central Crossrail Paddington will be one of only three Crossrail stations in London s West End and will provide direct access to City and Docklands New access point to Crossrail will be opposite the entrance to Paddington Central, off Bishop s Bridge Road As part of these works, reconstruction of Hammersmith & City line station with new public square fronting canal (see image below). We have initial plans to improve pedestrian entrance to Paddington Central by linking it to the new square Approximate Crossrail journey times from Paddington to Key Central London stations Bond Street Tottenham Court Road Farringdon Liverpool Street Canary Wharf 2 minutes 4 minutes 7 minutes 9 minutes 16 minutes 9

10 Paddington Central Development Sites 4 KINGDOM STREET CROSSRAIL BOX 5 KINGDOM STREET 145,200 sq ft of offices (as consented) 9 floors Proposed start: end 2015 Situated below existing Crossrail deck at ground level 80,000 sq ft 8 metre clear slab Possession by 2018 Potential for retail, leisure, storage or parking 210,000 sq ft of offices (as consented) 14 floors Plan to redesign scheme and add additional floor space Proposed start: end

11 Financial Impact Investment of equity placing proceeds accretive to earnings in current financial year Pro forma LTV at 43% (from 46% pre placing) Impact FY 14 Annualised Net rent 16m 21m Underlying profit 1 9m 12m EPS 1 0.9p 1.2p Overall Placing EPS Accretion 0.4p 0.7p 1: Assumes 2% financing cost 11

12 Appendices

13 Asset Overview Investment Properties - 400m Property Sq ft Occupants Contracted rent pa m WALL yrs 2 Kingdom St 268,000 AstraZeneca, Nokia, Statoil Kingdom St 111,000 Novotel Sheldon Sq 143,000 Kingfisher, Prudential, Cerner Sheldon Sq Retail 88,000 Nuffield Health, Sainsbury Total 610, Development Properties - 70m Property Sq ft Likely start on site Estimated capex 2 m 4 Kingdom St 145,200 End Kingdom St 210,000+ End Crossrail Box 80,000 Reverts to BL by Total 435, Rents are subject to annual RPI linked uplifts 2 Excludes notional interest 13

14 Equity Placing Acquisition Spend Pro forma LTV at 43% - compares to 46% pre-placing Acquisition spend m 2014 EPS Annualised EPS Ealing Broadway shopping centre p 0.8p Surrey Quays JV buy-out p 0.2p Other acquisitions p 0.1p Impact as at 1 April p 1.1p Acquisitions since year end p 0.1p Paddington Central p 1.2p Impact as at 4 July p 2.4p 1: Assumes 2% financing cost 14