Adding value through development

Development offers the ability to add high-quality buildings to the portfolio and is a fundamental part of our business. Over the last 10 years, British Land has completed 8 million sq ft of development.

The outlook for returns in prime London offices has improved significantly over the last year with the availability of Grade A space in the City and the West End expected to be significantly restricted over the next few years. We have committed to an office development programme in the City and the West End with an aggregate cost, including land and interest of £1.5 billion, of which British Land's share is £1 billion. Our decision has been further supported by increasing rents and reducing incentives. These developments, which will deliver 2.2 million sq ft of high quality space in the City and West End by 2014, increase the weighting of London offices in our overall portfolio from 32% to around 40%, (based on estimated end development value) and are expected to generate significant incremental value for our shareholders.