21st Dec 2005 10:57
Slough Estates PLC21 December 2005 SLOUGH ESTATES LIGHT INDUSTRIAL ACQUISITION IN LA COURNEUVE, NORTH OF PARIS Slough Estates International ("SEI") has entered into a sale and leasebacktransaction to acquire the headquarters of Alstom Power (part of the Frenchindustrial group Alstom) in La Courneuve, Ile de France, immediately to thenorth of Paris for €24.5M, net of acquisition costs. The 10.9ha property provides 53,000m(2) of office and light industrialaccommodation which Alstom have leased back for a 9 year fixed term at an annualrent of €1.4M. Included in the sale is a 4.4ha prime industrial site withsubstantial frontage onto the A86 motorway (the second Paris ring road) - thisrepresents a development opportunity for the provision of new light industrialaccommodation. The sale and leaseback element of the transaction reflects a net initial yieldof 7.5% excluding the development site as at market value. SEI's Managing Director in Europe, Walter Hens, said "This acquisition not only guarantees a solid return from the leaseback elementof the property but also provides the opportunity to develop one of the onlysites with prominent frontage onto the A86. We strongly believe in the futuredevelopment of the light industrial market to the north of Paris and throughacquiring this well located income producing land bank we ensure that our futuredevelopment pipeline complements our existing developments." The transaction reinforces Slough Estates International as a major investor anddeveloper in the Parisian industrial market and complements the existingdevelopment pipeline in the Northern Paris market. La Courneuve is an importantpart of the 'friche industrielle' (industrial tissue) which spreads betweenNorthern Paris and Charles de Gaulle Airport and includes a number of businessparks. -ends- For further information please contact: Slough Estates The Maitland ConsultancyMichael Waring Colin BrowneTel: 01753 213335 Tel: 020 7379 5151 Notes to editors Slough Estates www.sloughestates.com Slough Estates is a leading provider of flexible business space in businessparks in Western Europe and North America, with over 1500 customers occupyingapproximately 3m square metres of business space. Slough Estates' properties arein suburban locations in close proximity to the main business centres, wherethere is long term demand for business accommodation to serve these key economicregions. The company's main activities are currently based around London,Brussels, Paris, Dusseldorf, Amsterdam, San Francisco and San Diego and thecompany continues to develop new business parks with the long term objective ofbuilding shareholder value and enhancing its reputation for quality buildingsoffering excellent value to customers. www.sloughestates.com At its interim results this year Slough Estates highlighted increaseddevelopment starts in Europe with 5,509 sq m completed in H1, 64,029 sq m underconstruction at the end of the first half of 2005 and with 56,112 sq m ofpossible starts in the second half of 2005. SEI's main interests in Continental Europe are in Brussels, Paris and Amsterdam.SEI's investment assets in Belgium and France were valued at £186m and £107m asat the time of its 2005 interim results. During 2005 SEI acquired a majorityshareholding in Dutch based Mainland JV - including a development pipeline of130,000 m2. In November this year the JV partners subsequently bought a majorsite close to Schiphol airport for €16.5m, providing a further 100,000 m2development opportunity. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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