British Land has exchanged on the sale of a 75-percent interest in the majority of its Paddington Central assets to GIC.
The transaction establishes a new joint venture with ownership split 75/25 for GIC and British Land respectively. The total consideration is £694 million (€825 million/$891 million).
Paddington Central was acquired in 2013 for £470 million (€558 million/$603 million), at the time comprising three buildings, a retail and leisure cluster and two development sites. In 2015 British Land completed the acquisition of 1 Sheldon Square for £210 million (€250 million/$269 million), and in 2017, British Land completed the development of 4 Kingdom Street which achieved rents 40 percent ahead of the best rents at the campus on acquisition. Overall, the campus has delivered an average total property return of 9 percent per annum since acquisition.
The joint venture initially will comprise the following assets: 2 and 4 Kingdom Street, 1 and 3 Sheld
