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.
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.”