British Land is in talks to sell half of its £2.5bn Broadgate office estate in the City of London to private equity investors as part of efforts to raise cash and rebalance its property portfolio.
The company is locked in negotiations with the Macquarie-backed Australian fund manager MGPA about a partial sale of the office campus , one of the supposedly 'sacred cow' legacy assets from its dealmaking during the last recession.
Broadgate was valued at more than £2.5bn at the company’s last set of results for the third quarter to 31 December, although any deal would likely see the estate have a value of nearer £2.3bn.
The estate is financed through a single £2.1bn securitisation structure and it is likely that any deal would see MGPA assume half of this debt, with a low amount of additional equity needed.
Financial Times Online