26 January 2017
Investor and Analyst TourClarges, Mayfair
@BritishLandPLC
www.britishland.com
Introduction
Tim Roberts Head of Offices & Residential
• In line with strategy
• Acquired in 2012 for £130 million
• Contributed to re-weighting of our portfolio towards West End
• Phased to follow 2010 Development Programme – 2010 Programme included The Leadenhall Building, 5
Broadgate and 10-30 Brock Street, Regent’s Place
– Generated over £1bn of profit
The Clarges Opportunity
42%58%
September 2016
60%40%
March 2012
City West End4
Office Strategy
Lifestyle orientated mixed use offices
CampusesLarge, office-led mixed use
lifestyle campuses
Campus-liteSingle assets and small clusters
Campus-Lite
• Opportunistic developments in strong locations
with well-managed environments
• Shorter investment time horizon
• Provide greater location flexibility to occupiers
74%
26%
Campus-lite Campus
5
• Entrepreneurial transaction – Opportunistic, off market purchase
– Preferred bidder due to ability to execute quickly
• Complex transaction – Relocation of Kennel Club
– Planning risk
• Delivered high quality office space– Luxury residential completing this year
An example of what we do well
6
• Meaningful transaction– c. £600m GDV (75% resi; 25% offices)
• Residential substantially de-risked– £280m of apartments sold; 63% by value
of residential
– 22 apartments sold in FY15; 1 further sale Dec 16
– 11 apartments remaining
• Office space 83% let/under offer; average £113 psf
• IRR since purchase of 20% – With further profit to come
Accretive to performance
7
• Post referendum activity – Office lettings in line with pre-
referendum ERVs
– One further apartment sold ahead of valuation
Market resilient for right product
8
Residential
James TaylorHead of Residential
• Scheme highlights– What’s special
• Sales – Current exposure
– Future strategy
– Our clients
Super Prime Residential
10
Sales
• British and British based
• Wide range of nationalities
• Value discretion
• Value service
• Value British Land’s enduring reputation
Our Clients
39
• An exceptional scheme being delivered to a high standard
• De-risked and with positive prospects for future sales
• Off market until 2018
Summary
40
Offices
Mike Wiseman Head of Office Leasing
• Launched building in September– Office space 83% let/under offer
• Average rent £113psf– Average rent free of 19 months
– In line with pre referendum ERVs
• 10 year terms secured on all floors
Office leasing overview
42
• Premium office space– In tune with core Mayfair demand
• Key features well received– Floorplate size and configuration
– Triple aspect
– Column free spaces
– Terraces
– Design aesthetic
• Impact of reception
Why have we been successful?
43
• Market for the right product still good– Letting success at Leadenhall, Yalding
House and now Clarges
• Leasing discussions on 10 potential requirements totalling 1.4m sq ftunderway – Interest at 4 Kingdom Street and next
phase of development pipeline
– Across our four campuses and from a range of sectors
Current market context
44
Conclusion
• On strategy
• Demonstrates our capabilities
• Accretive to performance
• Right product remains attractive
Summary
46