14th Feb 2005 07:01
British Land Co PLC14 February 2005 14th February 2005 BRITISH LAND INVESTS IN 23 DEBENHAMS DEPARTMENT STORES ______________________________________________________ The British Land Company PLC has exchanged contracts for a transactionencompassing 23 freehold and long leasehold Debenhams department storestotalling 3.28 million square feet for a value of some £495 million. Completionwill bring the value of British Land's retail property portfolio to over £6.4billion (based on September 2004 values and subsequent acquisitions). The stores are located in prime positions on high streets in major cities andtowns throughout the country, including London (Oxford Street), Manchester,Cardiff and Chester. A full list is attached as Note 1. They are leased to Debenhams for a term of 30 years from March 2004 (35 years inthe case of Oxford Street and Manchester) at a total rent of £27.9 million perannum from March 2005. The rent increases annually by 21/2% compound (exceptfor the four years from March 2010 when it increases annually by 3%), with areview in March 2019 and five yearly thereafter to the higher of market rent orthe initial rent as grown by 21/2% per annum. The tenant has an option to renewat the end of the lease for a further 25 years with a rent reviewable at fiveyearly intervals to market rent. The transaction will be financed at rates of approximately 5.1% from existingcash and debt facilities, including the £500 million additional long-term bondfinance currently being finalised as part of the (unrelated) Broadgaterefinancing. Stephen Hester, British Land Chief Executive comments: "This well let portfolio has guaranteed annual uplifts throughout a minimumterm of 30 years, and potential for additional rental growth, plus an initialincome return of 5.6%. We believe the 23 stores, leased to one of the leadingdepartment store operators in the UK, provide an excellent addition to BritishLand's retail portfolio. The secure income growth is expected to be increasinglyvaluable with various asset management opportunities on top and in a sector wellknown to us. " Enquiries: The British Land Company PLC Bob Bowden, Investment Director Tel: 020 7467 2892John Weston Smith, Chief Operating Officer Tel: 020 7467 2899 Finsbury Edward Orlebar Tel: 020 7251 3801 Notes to Editors Note 1______ The properties are: Gross Internal Tenure Floor Area (square feet) Bournemouth - Commercial Road 106,188 FreeholdCanterbury - Guildhall Street 116,494 FreeholdCardiff - St. David's Centre 140,325 Virtual FreeholdChelmsford - High Street 126,973 FreeholdChester - Eastgate Street 153,268 FreeholdEastbourne - Terminus Road 104,709 FreeholdHarrow - Station Road 225,208 LeaseholdKing's Lynn - High Street 46,602 FreeholdKingston upon Hull - Prospect Street 177,127 Freehold/Part LeaseholdLondon - Oxford Street 366,706 FreeholdLuton - George Street 61,317 FreeholdManchester - High Street 466,540 Virtual FreeholdOxford - Magdalen Street 139,918 LeaseholdSalisbury - Blue Boar Row 59,116 FreeholdSheffield - The Moor 213,842 LeaseholdSouthampton - Queensway 285,303 FreeholdSouthport - Lord Street 64,356 FreeholdStaines - High Street 113,367 FreeholdStockton - High Street 40,727 FreeholdStratford upon Avon - High Street 92,982 FreeholdTaunton - North Street 86,911 FreeholdWinchester - High Street 50,612 FreeholdWorthing - South Street 44,898 Freehold ------------ 3,283,489 Note 2______ British Land have been advised by Dalgleish. Lazard acted as financial adviserto Debenhams on the transaction. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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