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CVAs hit British Land’s bottom line

Company voluntary arrangements (CVAs) and administrations cost British Land £14.7m in the past 18 months, it was revealed in the property firm’s half-year results.

British Land, which owns shopping centres Meadowhall in Sheffield and Drake Circus in Plymouth among other centres, retail parks and shopping destinations, said £5.5m of space lost to CVAs and administrations had been re-let or was in negotiation.

New Look and Mothercare are among the retailers that closed stores through CVAs this year.

Overall for the six months to 30 September, British Land reported 98% occupancy across 457,000 sq ft of leased retail space, 5% ahead of the estimated recovery value, as it strategised for a smaller, more focused, retail operation.

Retail took the biggest hit to its portfolio value, down 4.5% year on year, in comparison to offices, which were up 0.7% and developments, which were up 7.2%.

Chris Grigg, chief executive of British Land said: “We expect retail to remain challenging in both the occupier and investment markets as the impact of long-term structural change is compounded by short-term headwinds.”

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