British Land occupancy rates at 97% despite being hit by CVAs

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British Land occupancy rates at 97% despite being hit by CVAs
British Land owns shopping centres such as Meadowhall in Sheffield (pictured) and Ealing Broadway in London.
// British Land occupancy rates at 97% despite wave of CVAs from retailers
// Retail leasing for the five months to August totalled 500,000sq ft, with rents of £7.2 million
// British Land also said rents were 3% ahead of estimated rental values

British Land has revealed that its occupancy rates are sitting at 97 per cent, despite being hit by store closures from retailers launching CVAs.

Ahead of an investor and analyst meeting taking place today, the major property firm – which operates many shopping precincts and store premises around the country – said retail leasing for the five months to August has totalled 500,000sq ft, with rents of £7.2 million.

Rents were also three per cent ahead of estimated rental values, with a two per cent premium to previous passing rents.

British Land has been one of several landlords hit in recent months by retailers using CVAs to stave off going bust by persuading landlords to cut rents or to close down stores all together.

The property firm has been involved in several, including Arcadia Group and Monsoon Accessorize.

However, it launched a legal action against the latter, after requests for information from Monsoon Accessorize and a commitment for the retailer to stump up extra money were not met.

Similar requests from Arcadia, which includes the Topshop, Dorothy Perkins and Miss Selfridge brands, were agreed.

Meanwhile, British Land revealed that it had secured £54 million in future rent for Broadgate, its 1 million sq ft flagship development in central London.

The office space deals with Bank of Montreal and the Sumitomo Mitsui Banking Corp equates to £54 million of future rent.

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