Whiteley Shopping Centre owner British Land says full retail parks and AI office demand have boosted profits

The owner of Whiteley Shopping Centre says full retail parks and growing demand for office space from AI and tech firms have boosted its profits this year.

Real estate giant British Land saw its shares increase in value on Wednesday morning after the announcement.

British Land’s office campuses business has benefited from deals with new AI-linked tenants, such as Claude parent firm Anthropic. It said last month that it was revising its profit forecasts.

The FTSE 100 firm said underlying profits grew by five per cent to £294m for the year to the end of March, surpassing analyst forecasts.

It reported that earnings per share was also up one per cent to 28.9p for the past year.

The group said it has been buoyed by strong take-up for offices in central London, which has risen to its highest level in 20 years.

British Land also said it has seen a strong performance across its retail parks, which includes Fort Kinnaird in Edinburgh and Whiteley in Hampshire, with occupancy of 99 per cent.

Simon Carter, chief executive, said: “We are benefiting from our leading positions in campuses and retail parks, where demand is growing and supply remains constrained. Our offer is clearly resonating with customers: we have around a five per cent share of the London office market, but accounted for per cent of reported leasing activity last year, rising to 33 per cent in the fourth quarter.

“While the geopolitical and interest rate backdrop has become more uncertain, the occupational fundamentals underpinning our portfolio are as strong as I have seen them.”

The original Whiteley shopping precinct, which was an outlet centre, was demolished in 2011 having become something of a ghost town after failing to compete with Portsmouth and Southampton. After a two-year remodelling and rebuilding project, the current centre with high street brands was opened in May 2013.