British Land has sold a 50% stake in the former Meta head office at 1 Triton Square in London’s Knowledge Quarter to Royal London Asset Management Property for £192.5m.
British Land negotiated a surrender of Meta’s lease at the Regent’s Place building in September last year for a premium of £149m.
Royal London Asset Management Property and British Land said the new 50:50 joint venture would accelerate the delivery of the science and innovation building, which will offer a mix of fitted and lab-enabled space as well as the potential to incorporate serviced offices to accommodate flexible requirements at the building’s lower levels, while retaining best in class office space on the upper floors.
Simon Carter, chief executive of British Land, said: “We are delighted to be working with Royal London Asset Management to deliver a world class science and innovation building at Regent’s Place. We proactively took 1 Triton Square back from Meta to reposition it for science and innovation customers, with the expectation of unlocking significantly higher rents, whilst benefitting from a considerable surrender premium to further improve the economics.
“This transaction is another example of how we drive value through establishing innovative JV partnerships, enabling us to flex our balance sheet, share the risk and crystallise the value created from Meta’s surrender premium.”
Mark Evans, head of property and commercial development at Royal London Asset Management Property, added: “We are thrilled to join forces with British Land to reposition 1 Triton Square for the science and innovation market. The partnership opportunity aligns with our wider strategy to leverage our platforms in new markets and continue to deliver on our commitment to purposeful investment.
“We have long recognised the demand for best-in-class science and innovation space, particularly in the Golden Triangle, and the need for this space in supporting the UK’s economic growth. In testament to this strategic vision Royal London Asset Management has established 1.5m sq ft of holdings to meet these needs over the past 10 years. 1 Triton Square will increase our holdings to over 2m sq ft and will form a core part of our wider portfolio as we position life sciences and innovation as a core platform for further investment.”
