Blackstone Group LP, the biggest manager of private-equity real estate funds, agreed to sell its 50 percent stake in London’s Broadgate complex for more than 1.7 billion pounds ($2.7 billion) in one of Europe’s largest office deals, said two people with knowledge of the transaction.
Asian investors are the biggest buyers of office property in the City of London this year, wagering that the financial district’s volatile market has changed since it routed Japanese buyers in the 1990s.
British Land Co., the U.K.’s second- largest real estate investment trust, said third-quarter net asset value stagnated as its retail properties depreciated. The shares declined as much as 2.3 percent.
Capital Shopping Centres Group Plc, the U.K.’s biggest shopping-mall owner, said first-half profit excluding items rose 53 percent, boosted by January’s purchase of Manchester’s Trafford Centre and higher rental income.
The Shard’s owners were so optimistic about rising rents in 2010 that they bought out Transport for London’s contract to rent about a third of the skyscraper. They have yet to find a new tenant for the 72-story tower’s offices.
Land Securities Group Plc, the U.K.’s largest real estate investment trust by value, said property vacancies rose in the first quarter as the number of visitors to its shopping malls declined by 2.8 percent.
British Land Co., the U.K.’s second- largest real estate investment trust, said first-quarter earnings before items rose 1.6 percent after the company made acquisitions and leased more space to tenants.