British Land CEO unveils top priorities
Jo McNamara has been British Land‘s chief executive for just over a month, and she’s already signaling that the company is due for a hard reset. Her first major move: ordering a strategic review of the entire business.
McNamara took over from Simon Carter on May 1.
She isn’t wasting time. According to a person familiar with her thinking, she is tasked with taking “a fresh look at everything” — from the property portfolio to the company’s operating model and balance sheet.
Why the review now
The review comes at a tricky moment for the London-listed real estate investment trust. Its share price has lagged peers over the past year, and the company is sitting on a large development pipeline that requires capital at a time when interest rates remain high.
She inherits a portfolio heavily weighted toward London offices and retail parks. The office market, particularly for older buildings, is under pressure from hybrid working. The firm has been repositioning its office portfolio toward prime, sustainable space, but the transition is expensive and not yet complete.
Retail parks and the value question
One area likely under scrutiny is the firm’s retail park business. These assets — large outdoor shopping centres with big-box tenants — have performed relatively well, with strong occupancy and rental growth. But analysts have questioned whether they command the same premium as high-street or prime office assets.
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The company has roughly £4.5 billion in retail parks, mostly in the UK. A sale of some or all of that portfolio is one option, though not the only one. A more likely scenario, according to the source, is a selective disposal program rather than a full exit from the sector.
Some investors want faster action.
Others urge caution. The new CEO will have to balance those competing demands while also dealing with a debt stack that includes £1.8 billion in bonds maturing over the next three years.
Development pipeline under the microscope
The developer has major projects underway, including the 1.3 million sq ft redevelopment of the Broadgate campus in the City of London. That scheme — a joint venture with Singapore’s GIC — is one of the biggest office developments in Europe. It’s due to complete in phases from 2027.
There’s also the Canada Water masterplan in southeast London, a 53-acre mixed-use project that includes offices, homes and retail.
The residential component alone is planned at 3,000 homes.
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That project is still in its early stages. It will require years of investment before it generates meaningful returns.
McNamara may choose to slow some of these developments or bring in more joint venture partners to share the risk. Or she could accelerate them, betting that the supply of modern offices will remain constrained and rents will keep rising. McNamara previously ran the company’s Canada Water project before leaving to become chief operating officer at Great Portland Estates. That means she knows the pipeline intimately — but also means she lacks a fresh pair of eyes on that particular asset.
Leadership and culture changes
McNamara has already made one personnel move: she promoted Darren Richards to the newly created role of chief operating officer. Richards was previously head of the retail parks division. The promotion suggests she values internal talent but may also want someone she trusts to handle day-to-day operations while she focuses on strategy.
There is no indication yet of broader leadership changes. But the “fresh look” mandate implies nothing is off the table.
The firm’s board has given McNamara time. She has six months to present the findings of the review. That’s fast by REIT standards, but slow enough to allow for thorough analysis. The company will report its first-half results in November, and the market expects a clearer picture then.
For now, the new CEO’s in-tray is full. The question isn’t whether she’ll make changes. It’s how many, and how quickly. Her first month suggests she prefers speed over caution — but strategic reviews have a way of taking longer than anyone expects.
