Herbert Smith Freehills advises British Land plc on its c. £300 million placing, retail offer and directors’ subscription

Leading international law firm Herbert Smith Freehills has advised British Land on its successful placing, retail offer and directors’ subscription to raise £301 million in gross proceeds for the company.

British Land is one of the largest property development and investment companies in the United Kingdom. The company became a real estate investment trust (REIT) when they were introduced in the UK in January 2007. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

The proceeds of the placing will be used to fund the acquisition of seven retail parks for a total of £441 million, with the remainder financed from existing cash and borrowing facilities.

The Herbert Smith Freehills team was led by partner and global co-head for Corporate Mike Flockhart, alongside partners Dinesh Banani and Charles Steward and partner and head of the global M&A practice Gavin Davies.

Mike Flockhart commented, “We are proud to have advised British Land on this successful placing to fund the acquisition of a portfolio of retail parks, in line with its strategy and with strong rental growth prospects. The deal follows several real estate equity capital market transactions that we have advised on over the last few months, demonstrating our strong experience in the sector.”

Other Real Estate ECM and listed deals that the firm has recently acted on include advising:

• a syndicate of investment banks on NewRiver REIT plc’s £50 million cash placing to fund, in part, the recommended £147 million offer for Capital & Regional plc;
• Unite Group, the UK’s largest owner, operator and developer of purpose-built student accommodation, on a its £450 million capital raise (2024) and its £300 million capital raise (2023);
• The underwriters on Great Portland Estates plc’s £350 million rights issue;
• The financial advisers and sponsor to Tritax Big Box REIT plc on its all-share combination with UK Commercial Property REIT Limited; and
• Capital & Counties (Capco) on the successful completion of an all-share merger with Shaftesbury to create Shaftesbury Capital.