Why British Land could be a wealth builder

I’m upbeat about the prospects for the British Land Company PLC (LON:BLND) (BLND.L) share price

British Land Company PLC
British Land Company PLC

I’m going to write today about a share I have not discussed previously, British Land Company PLC (LON:BLND) (BLND.L).  The property giant released results yesterday which I looked at and also read the article on Investomania. Seems like an interesting share so let’s get right into it.

In my opinion, it seems to be a classic case of ‘the results were good but the share went down’. There was a large fall of 4% in the British Land share price at one point on Wednesday 17 May. I’ve looked at the charts and can say this was possibly due to the rise the British Land share price has had overall in the past month. In late April the stock was trading around 640p, and at the time of writing it is trading at 646p.

This could possibly represent a buying opportunity to my mind, and the share is certainly one for my watchlist. The total net asset value of British Land is 915p per share, meaning there is about a 30% discount to this in the share price. The company’s assets are property, largely retail and residential property. There looks to be a large amount of ‘quality property’ from what I can see, including a sizeable amount in London and the South East.

On their website there is even a picture of Prince William and Prince Harry opening ‘The Cheesegrater’ which is a large new building in London near to St Paul’s Cathedral.

Why am I telling you this? Well, over the long run such property could rise in value. Sure, London is feeling the effects of Brexit at the moment, but in the long run I am optimistic about its position as a financial centre. Doubts about its future surfaced during the financial crisis a decade ago, and prices have gained considerably since then.

Overall, I feel that British Land may be worth buying and holding for the long term if it pulls back to around 620p.

About Mark Howitt 121 Articles
Mark Howitt is a long-term buy-and-hold investor who has been buying and selling shares for a number of years. He is particularly interested in the banking, energy and telecoms sectors, but also holds stocks in a variety of other industries.