UPDATE 1-British Land sells stake in West End properties for $539 mln

(Provides context, depth on arrangement)

Dec 23 (Reuters) – British Land Plc claimed on Wednesday it experienced marketed a 75% stake in 3 properties in London’s West End for 401 million kilos ($538.8 million), as real estate developers struggle with a slowdown in workplace lease renewals and hire collections.

Limitations to stem the distribute of the novel coronavirus have started to show up in the final results of United kingdom residence firms, at a time when the industry is also experiencing the uncertainties produced by Brexit.

British Land past thirty day period declared a sharp widening of losses and warned of much more complications for the office and retail sectors while resuming dividend payments on the back again of assets gross sales that have boosted its funds.

The firm, which owns a combination of offices and malls, stated the property sold to Allianz True Estate did not align with its core target on combined use London properties. Shares in the enterprise, which has now sold 1.1 billion kilos value of assets this calendar year, rose 1.6% in early trade.

The proprietor of the Broadgate buying and business office intricate in London mentioned the offer represented a “blended” net original generate of 4.32%, a quality to its Sept. guide price.

British Land and Allianz will also form a joint undertaking in which the developer will keep managing the a few properties in trade for a charge.