British Land is forming a joint venture designed to reduce the company's exposure to large single-asset concentrations. The joint venture -- with Blackstone Group -- focuses on British Land's holdings in Broadgate, a 30-acre office property in London. Blackstone acquires a 50% interest in Broadgate, which is valued at £1.07bn (US$1.73bn). British Land benefits from the joint venture through a reduction in relative scale within its portfolio of a long-term development and investment project in a cyclical sector. The company also reduces its concentration risk at the location, which mostly serves the financial services industry. Broadgate represents 27% of the portfolio -- British Land's largest asset -- with that share reducing to 16% after the transaction. “The transaction increases our capacity for profitable investment opportunities elsewhere as we reinvest in more diversified, liquid assets," said chief executive Chris Grigg in a statement. "We have selected Blackstone as a valued partner with excellent financial strength and real estate capabilities.” British Land acts as asset manager and administrator for the joint venture, while Broadgate Estates remains a wholly owned subsidiary. The joint venture will own the 14 securitized Broadgate buildings. British Land and Blackstone share equally in the returns from the 4.4m square feet of space, as well as in any future capital requirements. Write to Diana Golobay.