Property development and investment company British Land is hoping to sell around half of its London Broadgate estate, which is home to almost 5 million square feet of City office space.
At the end of 2008 the estate was valued at more than £2.5 billion, although any current sale would probably see a valuation of nearer £2.3 billion. British Land’s securitisation for the estate runs to around £2.1 billion.
Negotiations are currently underway with private equity group MGPA, though they are at an early stage and the company has not ruled out other prospective partners.
MGPA would take on half of British Land’s debt for the site. However, other analysts have suggested that Broadgate’s value is rather less than £2.3 billion, meaning that any equity after the sale could be negligible. British Land recently strengthened its balance sheet with a £740 million rights issue and is also selling further assets.