British Land’s quest to build on its portfolio of UK retail parks has been given a boost as the property giant turned to shareholders to raise £300 million.

And the funds will be much needed given British Land has just acquired a portfolio of seven UK retail parks from Canadian investment giant Brookfield for £441 million, boosting its position in the sector.

The portfolio of high-quality parks across England and Scotland totalling 1.9 million sq ft of space include those in Falkirk, Middlesborough, Nottingham, Rugby, St Helens, Telford and Waterlooville. 

British Land said the seven newly acquired parks are 99% occupied, with current tenants, which include M&S or Sainsbury’s as anchors, confirming the locations “trade very well.”

British Land has invested £711 million into retail parks since April which its CEO Simon Carter long expressed his support for retail parks, citing what he refers to as ‘the three As’: affordability due to generally lower rents; adaptability, as retailers can utilise them for click-and-collect services or last-mile delivery hubs; and accessibility, since they are typically situated on the outskirts of towns and cities with ample parking.

He added: “We started buying [retail parks] in 2021 and since then they have been the best performing part of UK real estate,” Carter said. “Multi-channel retailers have quickly worked out that a retail park is the best physical format for filling online [orders].”

Since 2021, retail parks have been noted as the best-performing segment for British Land, contributing positively to their overall growth.

Because of the strong occupancy rates, British Land said it’s confident that retail parks rents will continue to rise in stark contrast to other parts of the commercial property market.