British Land Buys Telford Bridge Retail Park for £30M as Jo McNamara Reports 12% Rental Growth

LONDON — British Land has acquired Telford Bridge Retail Park in Telford, Shropshire, for £30 million at a topped-up net initial yield of 8.3%, the company said in a trading update for the six months ended 30 September 2026. The update, issued Oct. 15, carries comments from Chief Executive Jo McNamara, who joined the company in mid-September.

British Land will announce its half-year (HY27) results on Nov. 18, 2026. The unaudited update said the company expects underlying earnings per share of 16.1 pence for the period, up 5% from a year earlier.

Telford Bridge Retail Park Acquisition Details

Telford Bridge Retail Park is on Old Park, Colliers Way, Telford, Shropshire, TF3 4PB. The scheme covers more than 195,000 sq ft and sits close to Telford town centre and Junction 5 of the M54, giving it access to the local catchment and regional road network.

Applying the 8.3% topped-up yield to the £30 million price implies initial annualised income of roughly £2.49 million. That yield is above the 4.7% net initial yield British Land achieved on assets it sold over the same six-month period. The comparison is not a direct measure of value creation, because disposal yields reflect the characteristics of the assets sold, while the Telford figure is topped-up and may include lease incentives or other income adjustments.

Jo McNamara: Focus on Momentum and Efficiency

“Since joining British Land in mid-September, my views on the quality of the portfolio, the expertise of our teams and the opportunities ahead of us have been reinforced and this is reflected in a strong first half,” McNamara said. “Despite the ongoing macroeconomic volatility, demand for our space has driven double-digit like-for-like net rental income growth and an excellent leasing performance across the portfolio.”

She added: “I am focused on building on this momentum to capture demand and drive rents forward, while ensuring the business is as efficient as possible and allocating capital to deliver the best returns. We have a strong platform from which to deliver sustainable earnings growth and attractive, income focused returns for shareholders.”

First-Half Financial and Valuation Results

British Land expects the following for the six months to 30 September 2026, subject to external review:

• Underlying profit of £166 million, compared with £155 million in HY26, and underlying EPS of 16.1 pence, compared with 15.4 pence.
• Like-for-like net rental growth of 12%, with development lease-up and cost efficiencies more than offsetting lower surrender premiums and higher interest rates.
• Portfolio values up 1.5%, with campuses up 1.6% and Retail & London Urban Logistics up 1.2%, of which retail parks rose 2.4%.
• Estimated rental value (ERV) growth of 3.0%, with campuses up 3.9% and Retail & London Urban Logistics up 2.0%, of which retail parks rose 2.7%.
• Net equivalent yield up 3 basis points at 6.1%.
• EPRA Net Tangible Assets per share of 599 pence, compared with 590 pence at FY26, and total accounting return of 3.4% for the six months.
• Loan to value of about 39.6%, compared with 39.2% at FY26, and group net debt to EBITDA of about 7.0 times, compared with 7.7 times.

The company reiterated FY27 underlying EPS guidance of at least 30.5 pence, which represents 6% growth year on year, and an expectation of 3% to 6% annual EPS growth over the medium term. It also reiterated guidance for future ERV growth of 3% to 5% a year across the portfolio.

Retail Park Leasing and Occupancy

British Land's retail parks were 99% occupied at the end of September. The company leased 438,000 sq ft on retail parks during the half at rents 6.8% ahead of ERV and 9.6% ahead of previous passing rents, with a further 533,000 sq ft under offer.

Across the wider Retail and London Urban Logistics portfolio, British Land completed 739,000 sq ft of leasing at rents 7.3% ahead of ERV and 5.3% ahead of previous passing rent. A further 674,000 sq ft is under offer, 12.1% ahead of ERV and 9.0% ahead of previous passing rent. Occupancy for the segment was 98%, or 97% on an EPRA basis, and like-for-like net rental growth was 2%, which the company attributed to virtually full retail park occupancy and the burn-off of historical overrent.

Retail parks represent 32% of British Land's business. The company said its retail parks received 209.2 million visits in FY26 and that 52% of the UK population lives within a 30-minute drive of one of them.

London Campuses Continue to Lease Up

On campuses, British Land completed 78 deals covering 689,000 sq ft in the first half, at rents 14.8% ahead of ERV and 18.3% ahead of previous passing rent. A further 396,000 sq ft is under offer, 11.2% ahead of ERV. Campus occupancy was 95%, or 93% on an EPRA basis, and like-for-like net rental growth was 25%.

Development highlights include:

• 2 Finsbury Avenue: Following final agreement with Citadel to take 33% of the building, a further 119,000 sq ft is under offer, bringing the scheme to 52% let or under offer.
• Broadgate Tower: Six further deals across 49,000 sq ft have completed, taking the scheme to 62% let.
• Regent's Place: One Triton Square is now fully let, and 1 Broadgate is also fully let.

Across the whole portfolio, British Land completed 1.4 million sq ft of leasing at rents 10.4% ahead of ERV and 7.9% ahead of previous passing rent, with a further 1.1 million sq ft under offer, 11.6% ahead of ERV.

Capital Recycling Strategy

The Telford purchase forms part of a two-way capital programme. British Land sold £247 million of assets at a net initial yield of 4.7%, broadly in line with book value, and has a further £202 million under offer. The company also completed its acquisition of Life Science REIT on 20 April 2026.

Market Context

UK retail parks have continued to outperform much of the wider retail market, with investors competing for a limited pool of assets. Low vacancy and limited available space for occupiers are supporting expectations of further rental growth. For British Land, the Telford acquisition adds exposure to a segment where its retail-park portfolio is virtually full and where new leases are being signed above previous passing rents. In FY26, the company leased 3.8 million sq ft across its portfolio at rents 7.2% ahead of ERV, and underlying profit rose 5% to £294 million.

British Land, a UK commercial property company focused on London campuses and retail parks, owns or manages a portfolio valued at £15.8 billion, of which its share is £10.1 billion, as of 31 March 2026.

Sources

• British Land, Q2 trading update: https://www.britishland.com/news/q2-trading-update/