By Anthony O. Goriainoff
British Land Co. said on Monday it would sell a 75% stake in its Paddington Central assets in London to Singapore’s GIC for 694 million pounds ($891 million), and that was 1% below September 2021 book value.
The UK-based property company said proceeds from the transaction will be invested in value-added development opportunities within its portfolio, as well as growth areas that include development-focused city logistics in London. , among others.
The company said the transaction will see the creation of a new joint venture with a 3:1 ownership split for GIC and British Land, respectively.
The company said completion is unconditional and will be finalized within three months.
“We expect the transaction to reduce EPS per share by 1.6 pence on an annualized basis before reinvestment. The transaction will slightly reduce net tangible assets per share, after fees and taxes, and reduce the effect leverage of approximately 500 basis points immediately upon completion with proceeds to be reinvested in development and growth opportunities in line with strategy,” the company said.
Write to Anthony O. Goriainoff at [email protected]