Meta pays British Land €172m to exit office lease in London

Days after reportedly putting the Meadowhall shopping centre in Sheffield up for sale, British Land has announced that tenant Meta is breaking its lease on an office in London owned by the UK REIT.

Meta, which owns Facebook and Instagram, is paying British Land £149 mln (€172 mln) to exit its contract on an office that it has never occupied.

The US-headquartered digital giant let 1 Triton Square in 2021 following a refurbishment, but never transferred operations there. Meta remains in occupation at the adjacent Regent's Place, and has lined up an office at Lewis Cubitt Square to join its Canal Reach premises in King's Cross.

According to reports, Meta signed a 20-year lease on the office and is making a one-off payment to exit its responsibilities. British Land reported that the move would reduce its earnings per share by 0.6% over the next six months to 31 March.

However, the firm said that its earnings guidance for the year should not be affected due to success in collecting backdated rents owed from the pandemic.

Earlier this year, the FTSE 100-listed firm reported losses of more than £1 bn as the value of its properties declined 12.3% year-on-year at the end of March.

In mid-September, British Land and its joint venture partner Norges Bank Investment Management reportedly appointed CBRE to seek a buyer with £750 mln to spend on Meadowhall.


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