Overview
We have a diversified business model and invest in schemes where we can leverage our competitive strengths in development, asset management and placemaking to add value.
We believe value in real estate is created over the medium term, and we are actively positioning the portfolio towards growth.We are the market leader in Campuses, where we are increasingly focused on the exciting life sciences and innovation sectors.
We are consolidating our position as the largest owner operator of retail parks where scale allows us to negotiate portfolio deals with large retailers, and we are building a leading London Urban Logistics portfolio.
We have a strong balance sheet, a best in class platform and through continued capital recycling we are strengthening the foundations of our business and its ability to create long term value for our stakeholders.
Retail
Retail & London Urban Logistics1: 37% of portfolio by value
Retail Parks account for 61% of this segment of the portfolio and we are the UK’s largest owner and operator with c.8% of the market.
Retail parks are the preferred format for retailers due to their affordability and compatibility with omni-channel. Given their strong fundamentals and attractive yields, we are looking to acquire more parks to further consolidate our leadership position in this attractive segment.
We also own a small, non core, portfolio of shopping centres (c.8% of the Group’s portfolio), the largest of which is a 50% share in Meadowhall shopping centre in Sheffield.
Our London Urban Logistics portfolio (c.3% of the Group’s portfolio) is the newest part of our business. We focus on Zone 1 and multi-storey developments within the M25. Our pipeline has a gross development value of £1.3bn to deliver one of London’s most environmentally sustainable and centrally located urban logistics portfolios. Demand is strong due to the long term growth of e-commerce and rising consumer expectations for priority delivery. This supply-demand imbalance underpins the attractiveness of this market segment. In addition, last mile logistics solutions are increasingly sought after due to their strong sustainability credentials given they reduce large vehicle movements and allow the use of e-vehicles for the last mile delivery to the end customer.
Campuses
Campuses: 63% of portfolio by value
We are the leading owner and operator of Campuses in the UK and with our unique model we drive above average returns1.
Our Campuses bring together best in class buildings with leading sustainability and design credentials, surrounded by attractive public spaces and a range of amenities including shops, gyms, restaurants and bars. Our Campuses are located close to key transport hubs and benefit from excellent connectivity. Since we own the space between our buildings, we use our placemaking expertise to create an engaging public realm and the right mix of amenities.
Campuses provide flexibility for companies to grow, and they attract businesses in industries that like to cluster together in sectors such as life sciences, technology, engineering and financial services, fostering innovation and collaboration.
1. As of 1 April 2023, the Group renamed the ‘Retail & Fulfilment’ operating segment ‘Retail & London Urban Logistics’. Refer to Note 21 of the consolidated financial statements for further information.
Sustainability is important to us and our customers – who are looking to reduce their own carbon footprint. All of our developments are net zero and we target a BREEAM2 Outstanding accreditation and an EPC A rating. We have assembled an 8.9m sq ft development pipeline of best in class sustainable office space, of which 1.8m sq ft is already committed. We are also increasing our exposure to life sciences and are onsite to deliver 190,000 sq ft of lab enabled space and have a pipeline of 1.9m sq ft.
We have four main Campuses in London:
Broadgate A 32 acre office led Campus in the City of London, with excellent connectivity, located next to Liverpool Street Station and the recently opened Elizabeth Line. Its proximity to Shoreditch attracts a breadth of customers from financial services, law firms, fin-tech, media and other growth sectors. As part of our transformation of the Campus, we have invested significantly into the buildings and public realm. Our newest building 100 Liverpool Street was our first net zero development and was recently shortlisted for the Stirling Prize for its outstanding design credentials. We are currently on site at 1 Broadgate, a 544,000 sq ft office led redevelopment, which is already fully let (or under option) to JLL and Allen & Overy, four years ahead of completion.
Regent’s Place is a 13 acre Campus which we are in the process of repositioning for growth in life sciences and innovation. It is uniquely positioned in the Knowledge Quarter, close to a range of academic and research institutions including University College London, the Wellcome Trust and the Francis Crick Institute. The Campus has excellent transport links with Euston and Kings Cross stations nearby.
Paddington Central is an 11 acre office led Campus in London’s West End, which sits next to Paddington Station with access to the Elizabeth Line and Heathrow Express. Its central location and accessibility attracts a broad range of corporates in financial services, telecommunications and technology. We have made significant investments in the public realm and our latest development is the full refurbishment of 3 Sheldon Square, a 140,000 sq ft office building, which is 65% pre let to Virgin Media O2.
Canada Water is a 53 acre mixed use Campus. It is the largest mixed use development in the UK, creating a whole new piece of the City and is led by a team that includes members who have worked on the iconic King’s Cross redevelopment. Located in London’s Zone 2, Canada Water is on the Jubilee Line and London Overground, making it easily accessible to London Bridge, the West End, the City and tech hubs around Shoreditch.
The Canada Water Masterplan will deliver around 2m sq ft of workspace, around 1m sq ft of retail, leisure, entertainment, education and community space, and around 3,000 new homes, of which 35% will be affordable. It is home to Printworks London, one of the UK’s leading cultural venues. When complete, Canada Water is expected to have the UK’s largest collection of BREAAM Outstanding buildings.
Our newest Campus is Peterhouse Technology Park, a 14 acre innovation led Campus in Cambridge, part of which is let to ARM. We expect to commit to the development of the newest part of the site in the next couple of months.