British Land is working up plans for more than 1m sq ft of urban logistics development opportunities at its Meadowhall shopping centre in Sheffield and retail park in Teesside.
The landlord said it will submit planning applications for both in the coming months, after identifying the potential for logistics developments within its portfolio.
The news comes as BL exchanges contracts on its £87m deal to buy its first logistics property – a circa 200,000 sq ft customer fulfilment centre let to Waitrose and Crown Records Management in Enfield – citing “significant redevelopment potential” for increasing its density.
The landlord also said it expects to place build contracts for its Canada Water scheme over the summer, having completed the drawdown of its headlease in December. Enabling works for the first three buildings, which total 580,000 sq ft including 265 homes, have commenced.
In a trading update this morning, BL also said it is exploring further opportunities to buy retail parks, having recently completed the acquisition of the A1 Retail Park in Biggleswade, Bedfordshire for £49m at a net initial yield of 8.5%.
Some 76% of rent has been collected for the March quarter, with 96% of office tenants and 54% of retail occupiers paying what they owed.
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