Office space in the Broadgate Estate has been sold to private equity giant Blackstone Group in a deal worth £1.07 billion.
The acquisition will see the US firm take up half of the 4.8 million square feet of office space available in the 30-acre development, with British Land retaining ownership of the rest.
Blackstone will also take on 50 per cent of the loan secured against Broadgate, which amounts to £987 million.
A statement from British Land intimated that the deal was vital to reducing the risks to which the company could be exposed as well as providing capital for further office space investments.
The company stated: “This transaction realizes our strategic objective of reducing exposure to large single asset concentrations.
“It puts British Land in a very strong position by reducing its group loan to value ratio to 30 per cent and allowing it to take maximum advantage of market opportunities as the cycle develops.”
As a result of the deal, the proportion that City of London office space accounts for in British Land’s portfolio will fall from 31 per cent to 21 per cent.
Tags: British Land, london offices, Office Space, Offices