British Land scoops Debenhams stores

THE property company British Land revealed today that it has bought 23 department store buildings from retailer Debenhams for £495m.

British Land said the deal would take the total value of its retail property portfolio above £6.4bn.

The stores total 3.28m square feet and are located in prime positions on high streets in major cities and towns throughout the country, including London (Oxford Street), Manchester, Cardiff and Chester. They are leased to Debenhams for 30 years (35 years in the case of Oxford Street and Manchester) at a total rent of £27.9m per annum from March 2005. Stephen Hester, British Land Chief Executive said, 'We believe the 23 stores, leased to one of the leading department store operators in the UK, provide an excellent addition to British Land's retail portfolio.

'The secure income growth is expected to be increasingly valuable with various asset management opportunities on top and in a sector well known to us.'