26th Mar 2008 07:01
British Land Co PLC26 March 2008 BRITISH LAND FORMS £1.2 BILLION SUPERSTORE JOINT VENTURE WITH SAINSBURY'S The British Land Company PLC and J Sainsbury plc have agreed to create a £1.2billion joint venture property partnership incorporating 39 superstores acrossthe UK. The superstores, currently owned by British Land and leased to Sainsbury for 20years, form the basis of the new 50:50 joint venture partnership. It will havean initial life of 10 years, with an option to extend, and British Land willactively asset manage and administer the JV properties. The JV value of £1.2 billion represents a net equivalent yield of 5.1 per cent.The consolidated net asset value for the new JV company is £544 millionincluding British Land's existing £722 million of outstanding securitised thirdparty debt which will be retained by the joint venture. Stephen Hester, Chief Executive, British Land, said: "Today's agreement moreclosely aligns the interests of property owner and retailer to deliver value toshareholders in both companies. It acts as a catalyst to increase capital valueby improving, through extensions and developments, the Sainsbury Stores. " Ends Notes to Editors • The JV owns 38 Sainsbury's stores and one Waitrose store. • Average store size is 73,000 sq. ft. with a rental income of £61 million a year. • The transaction is priced off the latest reported asset and liability valuations which are supported by other recent market evidence. • British Land is the largest owner of superstores in the UK, other than those owned by occupiers. • As at December 2007, British Land's total superstore portfolio encompasses 97 stores, valued at £1.96 billion and accounts for 23 per cent of retail assets. Average lease length to first break is 19.7 years with 100 per cent occupancy rate. • Other significant UK British Land joint ventures include: Tesco, The Scottish Retail Property Partnership with Land Securities, and House of Fraser. • British Land is the largest UK REIT by assets (£14.6 billion) with total assets under management of £18.4 billion, as at December 2007. • The portflio, focused on the growth sectors of London Offices and Out of Town Retail, has the longest leases (average 14 years) and the highest occupancy rate (99 percent) of the major UK REITs. • Retail assets account for 58.8 per cent of the portfolio, 83 per cent of which is in prime out-of-town locations. Offices account for 38.8 per cent of the portfolio of which 99 per cent is London-based and includes a 5 million sq ft development pipeline coming to fruition between now and 2011. • British Land was awarded the title Sustainable Developer of the Year at ' Building' magazine's annual sustainability awards 2007. Date: Wednesday, March 26, 2008 Media enquiriesLaura De VereTel: 020 7467 2920. Mobile: 07739 292920 Investor RelationsAmanda JonesTel: 020 7467 2946 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
British LandSainsbury's