Fostering the arts

The Arts Council has been heavily involved with the Ł70m Sage Gateshead, a highly visible symbol of the economic and cultural regeneration of the North East. It is the first building for the performing arts to be designed by Sir Norman Foster and Partners.

Property Review

Development Programme


Committed projects
	Valuation at start	Costs to date	Current valuation (March ’05)	Costs to complete	Notional interest to PC¹	Current valuation + cost to complete + interest	Net income/ERV²
British Land’s share, £m	60	57	128	217	20	365	31

¹ estimated interest to practical completion, at 6.25% per annum, excludes allowance for rent free periods
² current estimated headline annual rent

Project	Sector	PC¹	Sq ft 000	% let by rent	Income contracted £m
51 Lime Steet	City office	Q4 2006/ Q1 2007	475	99	21.0
The York Building, W1	West End office	Q4 2006	138
Daventry (Plot E4 & C1)	Distribution	Q2/4 2005	1,050	100	2.5
Blythe Valley (Plot A1)	Business Park	Q4 2005	53
			1,716	75	23.5

¹ anticipated practical completion of construction
Based on Group and 50% share of JVs (except areas which are at 100%)

Blythe Valley Park, Solihull Construction has begun of two speculative, high quality flexible, 2 storey office buildings measuring 4,920 sq m (52,950 sq ft) in total at the successful 170 acre Blythe Valley Business Park, which includes an 87 acre Countryside Park. Completion is targeted for the 4th Quarter of 2005 to meet an improving occupational market.
Construction cost	£9m
Lettable area	4,920 sq m (52,950 sq ft)
Site area	3.1 acres
Tenure	Freehold
Ownership	100% owned
ERV	£1.0m pa

Daventry International Rail Freight Terminal (DIRFT), Daventry Following acquisition of this 74-acre site in joint venture with Rosemound Developments in March 2004, BL Rosemound has entered into pre-lettings for some 97,560 sq m (1,050,000 sq ft) of distribution warehouse accommodation with Tesco Stores Ltd and Exel Europe Limited. The two buildings are scheduled for completion in October and May 2005 respectively. Forward commitments to sell have been entered into on both buildings at a significant surplus to cost.
Construction cost	£38m
Lettable area	97,560 sq m (1,050,000 sq ft)
Site area	59 acres
Tenure	Freehold
Ownership	50% Joint venture
ERV	£5.0m pa
Pre lettings	750,000 sq ft to Tesco Stores Limited 300,000 sq ft to Exel Europe Limited

51 Lime Street, EC3 In November 2004 we announced that the Company had exchanged a binding agreement with Willis Group, the leading risk management and insurance intermediary, for a new development at 51 Lime Street. This will comprise two buildings designed by Foster and Partners. Willis is to take the entire office content of the buildings totalling 43,200 sq m (465,000 sq ft) on 25-year leases without breaks or take-backs of existing accommodation. The new headquarters offices will enable Willis to bring all its London based operations together on one site. In March 2005 the Company secured revised planning approval for the development and construction work has now started on site with a target completion to enable Willis to take occupation in 2007.
Construction cost	£191m
Lettable area	43,200 sq m (465,000 sq ft) Office 920 sq m (10,000 sq ft) Retail/Storage
Site area	1.24 acres
Tenure	Freehold
Ownership	100% owned
ERV	£21.3m pa
Pre lettings	43,200 sq m (465,000 sq ft) to Willis Group

The York Building, London, W1 Following demolition in April 2005 of the formerYork House, construction of the new building, to be known as The York Building, has commenced. Completion is programmed for the fourth quarter of 2006 to provide 8,630 sq m (92,900 sq ft) of efficient and adaptable office accommodation on a generous floorplate, taking advantage of its imposing island site close to Marble Arch. West End buildings such as this, offering corporate presence, operating efficiencies and contemporary architectural style, are rare. In addition to the offices there will be 1,780 sq m (19,200 sq ft) of retail leisure space and 22 high quality residential apartments.
Construction cost	£55m
Lettable area	8,630 sq m (92,900 sq ft) Office 1,780 sq m (19,200 sq ft) Retail/Leisure 2,420 sq m (26,000 sq ft) Residential
Site area	0.7 acres
Tenure	Geared long leasehold
Ownership	100% owned
ERV	£6.6m pa

We commit to projects in controlled stages on the basis of pre-lets or anticipated demand, adding value and quality assets to the portfolio.


Development prospects
	Costs to date	Current valuation	Costs to complete¹	Current valuation + cost to complete	Net income/ERV²
British Land’s share, £m	27	286	1,321	1,607	151

¹ excluding interest
² current estimated headline annual rent

Project	Sector	Sq ft 000	Cost £m¹	Planning
201 Bishopsgate	City office	836	279	Revised submitted
The Leadenhall Building	City office	601	270	Detailed
Regent’s Place	West End office/residential	1,036	370	Osnaburgh submitted/ NEQ pending
Ludgate West	City office	123	47	Detailed
Blythe Valley Park	Business Park	751	115	Outline/Detailed
New Century Park	Business Park/distribution	657	88	Outline
Meadowhall Casino	Leisure	409	124	Pending
Theale	Residential	254	46	Submitted
Daventry (BLR)	Distribution	335	5	Outline
Redditch (BLG)	Distribution	227	4	Detailed
		5,229	1,348

¹ estimated costs of construction excluding land and interest costs
Based on Group and 50% share of JVs (except areas which are at 100%)

The Leadenhall Building, EC3 A detailed planning consent has been obtained for the new 47-storey tower at 122 Leadenhall Street. Designed by Richard Rogers Partnership the new building will rise to 224 m (736 ft) and provide 55,830 sq m (601,000 sq ft) of office accommodation. The offices have been designed to give a range of floor sizes but all providing highly practical, useable space. The spectacular scale of the public space at the base of the building, featuring mature trees, shops, cafes and performance areas, would be unprecedented in the City. The existing building on the site is presently held as an income producing investment and a decision to proceed with redevelopment will be taken when circumstances are favourable.
Construction cost	£270m
Lettable area	55,830 sq m (601,000 sq ft)
Site area	0.86 acres
Tenure	Freehold
Ownership	100% owned
ERV	£29m pa

Broadgate Tower & 201 Bishopsgate, EC2 Although we have planning consent for 201 Bishopsgate our view is that it will be advantageous to offer a wider choice to potential occupiers, so we have submitted a revised planning application to the City Corporation for a larger development comprising two buildings totalling 77,630 sq m (836,000 sq ft). The 35-storey tower and adjoining 13-storey building are both designed by the Chicago office of architects Skidmore Owings & Merrill (SOM) and have been meticulously researched to meet the needs of both financial and professional occupiers. The two buildings will form the next phase of Broadgate and will be centred around a new piazza and galleria.
Construction cost	£279m
Lettable area	77,630 sq m (836,000 sq ft)
Site area	2.3 acres
Tenure	Long leasehold
Ownership	100% owned
ERV	£36m pa

Ludgate West, EC4 The next phase of the successful Ludgate development, Ludgate West, will provide 11,470 sq m (123,450 sq ft) of offices with ancillary retail. Designed by SOM the new building will front both Fleet Place and Farringdon Street. Demolition and site clearance has been completed and substructure works commenced pending a decision to proceed with full construction.
Construction cost	£47m
Lettable area	11,470 sq m (123,450 sq ft)
Site area	0.45 acres
Tenure	Freehold
Ownership	100% owned
ERV	£5m pa

Regent's Place, NW1 Regent's Place is now an established West End business location offering a mix of high quality offices, shops, health club, cafes and bars. The lively public spaces are attractively designed and landscaped and feature especially commissioned works by leading modern artists. A detailed planning application has been submitted for 36,600 sq m (394,000 sq ft) of offices and 10,980 sq m (118,200 sq ft) of residential accommodation for the west side of the estate (Osnaburgh Street), in partnership with the Crown Estate. Detailed negotiations are underway with the London Borough of Camden planning department. On the northeast quadrant (NEQ) of the estate our active programme is preparing the way for a further phase of development for 32,680 sq m (352,000 sq ft) of offices and 15,940 sq m (171,500 sq ft) of residential. A planning application will be submitted later in the year
Construction cost	£370m
Lettable area	69,280 sq m (746,000 sq ft) Commercial 26,920 sq m (290,000 sq ft) Residential
Site area	15 acres
Tenure	Freehold / long leasehold
Ownership	100% owned Development agreement with Crown
ERV	£32m pa – Commercial floor space only

Blythe Valley Park, Solihull Considerable potential remains at Blythe Valley Park for new development. Outline planning consent is in place for up to 111,500 sq m (1.2m sq ft) of office accommodation across the park. Individual plots will be brought forward for development to meet market demand. The results of the recently published inspectors' report into the Solihull UDP give support to the release of further land for development and an expansion of the Business Park.
Construction cost	£115m
Lettable area	69,790 sq m (751,000 sq ft)
Site area	47 acres
Tenure	Freehold
Ownership	100% owned Development agreement with Solihull Council
ERV	£15m pa

New Century Park, Coventry This site of 67 developable acres is substantially let to Marconi Corporation. The Company entered into negotiations with Marconi to develop a new headquarters facility on part of the site and a resolution to grant detailed planning consent was obtained. Discussions with Marconi are ongoing in the light of its current trading position. Opportunities for further development at the site are being pursued whilst maintaining the current income stream.
Construction cost	£88m
Lettable area	61,070 sq m (657,000 sq ft)
Site area	67 acres developable
Tenure	Freehold
Ownership	100% owned
ERV	£9m pa

Other projects
In addition to the Company’s significant commercial development pipeline, we are actively pursuing a number of residential led mixed-use projects. At Canada Water, in joint venture with Canada Quays Ltd, the Company has entered into a Development Agreement with the London Borough of Southwark for the development of a major mixed-use scheme, which includes masterplanning 40 acres on the Rotherhithe Peninsula. The Company aims to submit a planning application later this year.

In Sheffield, the Company is continuing to work closely with Sheffield City Council on the strategic masterplanning of the Lower Don Valley and the lands surrounding Meadowhall Shopping Centre.

Working with Countryside Properties, we are continuing to pursue a residential planning consent at Theale. A detailed planning application has been submitted and negotiations with the local planning authority are being actively progressed.

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