British Land, Royal London Asset Management to transform 1 Triton Square into leading science and innovation hub
British Land, in collaboration with Royal London Asset Management Property has unveiled a strategic joint venture (JV) to expedite the redevelopment of 1 Triton Square into a premier science and innovation facility at Regent’s Place. This ambitious initiative, valuing 1 Triton Square at £385 million, underscores both companies’ commitment to nurturing innovation and scientific advancement in one of London’s most vibrant research ecosystems.
The JV aims to leverage British Land and Royal London Asset Management’s extensive expertise in development and asset management to deliver a state-of-the-art facility. The project promises unparalleled flexibility, featuring a mix of lab-enabled and fitted spaces, alongside serviced offices to cater to varying tenant requirements. Positioned in the heart of London’s Knowledge Quarter, 1 Triton Square stands to significantly benefit from its proximity to esteemed institutions like The Francis Crick Institute and University College London, promising to attract leading innovators and researchers.
This collaboration represents a strategic pivot for British Land, aligning with its goal to actively recycle capital towards future developments, thus enhancing returns. For Royal London Asset Management, the JV marks a significant expansion of its life sciences and innovation portfolio within the UK’s Golden Triangle, further solidifying its position as a key player in the field of responsible property investment.
Simon Carter, CEO of British Land, expressed enthusiasm about the partnership, highlighting the strategic decision to reclaim 1 Triton Square from Meta to cater to the science and innovation sector. “This transaction is another example of how we drive value through establishing innovative JV partnerships, enabling us to flex our balance sheet, share the risk, and crystallise the value created from Meta’s surrender premium,” Carter stated.
Mark Evans, Head of Property and Commercial Development at Royal London Asset Management, shared the excitement, emphasizing the JV’s alignment with Royal London’s broader strategy to support the UK’s economic growth through purposeful investment in science and innovation spaces.
The JV is financially advantageous for British Land, with expected gross proceeds of £192.5 million for a 50% share, complemented by a £149 million surrender premium previously secured from Meta. The anticipated internal rate of return exceeds 30%, coupled with a notable increase in net tangible assets per share and a reduction in loan-to-value ratio, showcasing the strategic and financial prudence behind the initiative.
The formation of this JV between British Land and Royal London Asset Management at 1 Triton Square is a testament to the growing demand for flexible, high-quality science and innovation spaces in London and beyond. By creating an ecosystem that supports cutting-edge research and development, this project not only meets the immediate needs of the innovation sector but also contributes significantly to the UK’s broader economic and scientific ambitions.