Meadowhall and Broadgate owner says rent collection has improved since lockdown eased<\/p>\n
Last modified on Tue 13 Jul 2021 03.39 EDT<\/p>\n
British Land, owner of shopping centres including Sheffield\u2019s Meadowhall and Broadgate in London, said trading at its out-of-town retail parks was almost back at pre-pandemic levels, as rent collection improved across its portfolio.<\/p>\n
The company, one of Britain\u2019s biggest commercial property owners, is betting on open-air retail parks that are accessible by car to lead the recovery, as Covid lockdown measures are eased.<\/p>\n<\/p>\n
Footfall and sales at its retail parks were at 96% and 99% of pre-pandemic levels between 17 May and 3 July. At covered shopping malls, footfall and sales were 75% and 89% of 2019 levels.<\/p>\n
British Land is on the lookout for more retail parks and has just acquired one at Thurrock in Essex, just off the M25, for \u00a382m.<\/p>\n
It said retail park values were starting to rise, up 0.7% in the quarter to June. Retail parks make up just over half of the group\u2019s assets. Retailers at Thurrock include Decathlon, Adidas, Nike, TK Maxx, Boots and Pets at Home.<\/p>\n
Restaurants in British Land malls and retail parks have recovered strongly since the reopening in the spring, with sales up 6% compared with 2019 levels. Among retailers, jewellery, accessories, childrenswear, furniture and homewares, along with convenience stores, have performed well.<\/p>\n
British Land, which slashed the value of its property portfolio by almost \u00a31bn as rents fell sharply during the pandemic, has so far collected 85% of the \u00a387m of rent due in the June quarter, up from 72% in the December quarter. After further payments in recent weeks, it has received 91% of the rent due in the March quarter, with 99% received for offices and 85% for retail.<\/p>\n