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L.Frank Baum

Property

Portfolio description – Principal sectors, out-of-town retail – £6.5 billion

Retail warehouses >
Superstores >
Meadowhall Shopping Centre >

Retail warehouses

British Land’s share £3,112m Total value £5,764m	Tenants include:
British Land’s share £3,112m Total value £5,764m	Argos	Marks & Spencer
109 retail warehouse properties, of which:	Asda	Matalan
109 retail warehouse properties, of which:	B&Q	Mothercare
72 retail parks with total 894 units; and	Boots	New Look
72 retail parks with total 894 units; and	Borders	Next
37 solus units	Carpetright	Pets At Home
Total floor area 1.2m sq m (13.2m sq ft) 71% with open A1 use	Comet	Poundstretcher
	DFS	Sainsbury’s
	Dixons Group	Sports World
Predominantly freehold	ELC	Tesco
Total rent passing £224m pa, British Land’s share £123m pa	Halfords	TK Maxx
Total rent passing £224m pa, British Land’s share £123m pa	Homebase	Toys ‘R’ Us
Average rent £16.46 per sq ft	Homestyle Group	Virgin
Weighted average lease term including breaks14.4 years	JJB Sports	Zara
Weighted average lease term including breaks14.4 years	Mamas & Papas

Teesside Shopping Park, Stockton-on-Tees

British Land's retail warehouse park investments represent 21.6% of the total portfolio.

Included in these investments are:

Teesside Shopping Park, Stockton-on-Tees

This freehold property is located at the intersection of the A66 and A19 trunk roads between Stockton-on-Tees and Middlesbrough and comprises:

Phase 1: 31,500 sq m (340,000 sq ft) of open A1 retail space arranged in 30 units, on a site of 19 hectares (47 acres).

Phase 2: a 3.3 hectare (8.1 acre) site located on the Park's principal access, comprises two retail units totalling 3,900 sq m (42,000 sq ft) occupied by Comet and Staples and three restaurant units totalling 1,090 sq m (11,700 sq ft).

Phase 3: an 11 hectare (27 acre) site, surrounding an existing leisure development (not in the Company's ownership), which may be considered for future development for commercial uses.

A stand-alone Pets at Home unit comprising 740 sqm(8,000 sq ft) and the reversionary interest in the adjoining Toys 'R' Us unit also form part of the investment.

Planning consent has been obtained for a walkway refurbishment and additional customer facilities, which will be implemented in phases to minimise disruption to the scheme.

Top rents at the park are now £42.50 per sq ft.

The Kingston Centre, Kingston, Milton Keynes

(50% owned in Tesco BL Holdings joint venture)

The Kingston Centre occupies a freehold 14 hectare (35 acre) site, close to junctions 13 and 14 of the M1 motorway and provides a total of 22,500 sq m (242,000 sq ft) of open A1 retail space.

The Centre includes a 12,670 sq m (136,400 sq ft) Tesco Extra superstore with a petrol filling station and car wash and seven retail warehouses totalling 8,630 sq m (92,900 sq ft). Tenants of these include Boots, Mothercare, Next, Marks & Spencer and Mamas & Papas. There is a covered shopping mall with 12 units totalling a further 850 sq m (9,200 sq ft), a drive-thru McDonald's, a pub and a car showroom. Tesco has an overriding lease covering the superstore and mall units. A former car wash unit has been redeveloped and let to Dominos Pizza and Carphone Warehouse.

Homebase, Ipswich

Homebase DIY stores

The portfolio of stand-alone Homebase stores comprises 22 properties. Located mainly in the South East of England, annual rents total £12.5 million, averaging £153.60 per sq m (£14.27 per sq ft). The majority are let on 20-year leases from December 2000. Total floor area is 81,430 sq m (876,500 sq ft).

Fort Kinnaird Shopping Park, Edinburgh (HUT)

(owned by Kinnaird and Edinburgh Fort Unit Trusts)

A long leasehold open A1 shopping park of 51,000 sq m (548,000 sq ft) in 49 units, four food outlets, two leisure outlets and factory and office space of 8,450 sq m (91,000 sq ft).

Key tenants: Borders, ELC, HMV, Marks & Spencer, Next and UCI Cinemas.

New Mersey Shopping Park, Speke (HUT)

A freehold part open A1/part restricted planning consent retail park of 44,700 sq m (481,000 sq ft) in 30 units and two restaurants.

Key tenants: Boots, Borders, B&Q, ELC, Gap, Next and Marks & Spencer.

Fort Shopping Park, Glasgow (HUT)

A long leasehold open A1 park of 36,500 sq m (387,500 sq ft) in 60 units (plus kiosks).

Key tenants: Boots, Zara, Oasis, River Island, Next, Top Shop, Virgin, Starbucks, Argos, H Samuel, Mamas & Papas and New Look.

Parkgate Shopping Park, Rotherham (HUT)

A freehold open A1 park of 52,000 sq m (561,500 sq ft). There are a total of 30 retail units, a 8,800 sq m (95,000 sq ft) Morrisons foodstore and five further units including restaurants.

Key tenants: Next, Matalan, Marks & Spencer, Boots and TK Maxx.

Superstores

Tesco, Formby

British Land’s share £1,767m Total value £2,021m		Tenants:
British Land’s share £1,767m Total value £2,021m		Morrisons/Safeway (2 stores)
71 superstores located across England, Wales and Northern Ireland		Sainsbury’s (43 stores)
		Somerfield (10 stores)
77% of stores larger than 40,000 sq ft		Tesco (15 stores)
Average store size 67,000 sq ft		Waitrose (1 store)
Total floor area 444,000 sq m (4.8m sq ft)		66 freeholds, 5 long leaseholds
Total site area 171 hectares (423 acres)		57 stores 100% owned
Total car spaces c.28,000		14 stores owned 50% in joint ventures
		Total rent passing £97.5m pa British Land’s share £85.3m pa,

		Average rent £20.39 per sq ft
		Weighted average lease term to break (and expiry) 20.9 years

British Land's investment in superstores represents 12.3% of the total portfolio.

We calculate that we are the largest owner of UK superstore properties, other than the occupiers themselves.

In an increasingly restrictive planning environment and with limited new supply, the retailers continue to require more and larger stores and are prepared to commit to full lease lengths of over 20 years.

These investments, acquired over some 16 years, have been enlarged by 45 extensions adding a total of 60,850 sqm(655,000 sq ft).

In addition to these, British Land also owns, directly or 50% in joint ventures, a further 13 superstores which are included in other sectors of the portfolio (such as retail warehouse parks), and total a further 111,000 sq m (1,200,000 sq ft).

Meadowhall Shopping Centre, Sheffield

Meadowhall Shopping Centre, Sheffield

Value £1,550m		Anchor stores:
132,800 sq m (1,430,000 sq ft) retail		BHS
Site area 74 hectares (183.3 acres of which 73.7 acres undeveloped)		Boots
		Debenhams
201 shop units, 9 anchor stores, 11-screen WarnerVillage cinema, 26 speciality kiosks, 20 mall kiosks		H&M
		House of Fraser
28 restaurants and cafes (including Oasis food court) seating for some 3,300		Marks & Spencer
		Next
Up to 800,000 visitors per week at peak time		Sports Soccer
Direct access to junction 34 of M1 motorway		WH Smith
Free parking for over 12,000 vehicles		Freehold
On site transport interchange with bus, train and supertram services		100% owned
		Rent passing £70.8m pa
www.meadowhall.co.uk		Average rent £61.62 per sq ft
		Weighted average lease term including breaks 14.9 years
		Weighted average lease term including breaks 14.9 years

Meadowhall is one of the largest and most successful shopping centres in the UK.

The two level, fully enclosed mall with excellent transport links continues to be attractive to both retailers and their customers. For multiple retailers at Meadowhall, 80% of the units are in the top 10 performing outlets of their company.

During the past year 'The Lanes' speciality retail area has been refurbished. The car parks were upgraded and major refurbishment of the malls has commenced. This will improve the overall look and feel of the Centre and the introduction of cooling will provide a more comfortable shopping experience and help increase dwell time.

The reconfiguration of space previously let to Allders and Sainsbury's including the introduction of mezzanines and a new first floor mall, will increase the floor area by around 46,000 sq ft. The project will complete in 2007 and provide two new stores and a number of additional units.

The Company has also invested in a major master planning exercise for the Lower Don Valley in conjunction with Sheffield City Council for the undeveloped land.

Meadowhall has again received 'Purple Apple' Awards from the British Council for Shopping Centres for Best Single Event for the 'Funky Feet Campaign', Retail Partnership for the ARC and Media Relations for the BBC Flashmob event. The Centre also received the Worldwide International Council of Shopping Centres Maxi Award for Revenue Impact for the ARC, our onsite logistics facility.

Rents passing are expected to increase to £80.1 million per annum when rent reviews to March 2007 and lettings have been completed (including the new units created as part of the reconfiguration mentioned above).