8th Mar 2007 09:00
Land Securities Group Plc08 March 2007 8 March 2007 For immediate release LAND SECURITIES TRILLIUM LANDS ROYAL MAIL PORTFOLIO Land Securities Group PLC announces that its property partnership business LandSecurities Trillium ('LST') has completed the acquisition of a portfolio of 285properties from the Royal Mail, for around £70 million. Of the portfolio, a total of 108 leasehold properties are vacant and surplus toRoyal Mail's operations, the responsibility for which will now pass to LandSecurities Trillium. These vacant properties will be refurbished by LST with aview to securing new occupiers. The remaining 177 freehold properties, where only part of the space is beingused by Royal Mail for operational purposes, will be leased back by LST to RoyalMail for 15 years. Royal Mail will occupy just the space it needs within thesebuildings. It is expected that the contract will become earnings enhancing forLST from the second year of ownership onwards. Commenting on the announcement, Ian Elllis, Chief Executive, Land SecuritiesTrillium, said: "We are delighted to be entering into this partnership with theRoyal Mail, which we hope will be the start of a long and mutually beneficialrelationship. We have released capital for Royal Mail while providing them witha flexible operational structure and relieving them of the burden of surplusspace." Martin Gafsen, Royal Mail's Property Director, added: "We are delighted to havereached agreement with Land Securities Trillium to take ownership of thepremises and space that Royal Mail no longer needs for its operation. This is akey element in our drive to increase efficiency and compete effectively in theUK postal market, which is now open to full competition. There will be noimpact on the high level of service that Royal Mail is delivering to customers." He continued: "As part of the transfer, we will lease back only the space weneed. This deal represents just 3% of our total operating space, so we willcontinue to own the vast bulk of the sites we use in our day-to-day operations." - Ends - For further information, please contact: Land Securities Trillium Financial DynamicsIan Ellis Stephanie Highett/Dido LaurimoreT +44 (0) 207 796 5500 T +44 (0)207 831 3113Land SecuritiesEmma Denne / Melissa WinsorT +44 (0) 207 024 5460 / 207 024 5462 Notes to Editors Part of the Land Securities Group, Land Securities Trillium is one of the mostestablished and innovative names in property outsourcing. We focus onunderstanding our customers' business and property requirements and meeting themthrough excellent service and innovation. We manage and provide services tonumerous commercial properties nationwide, for a growing number of companies andgovernment departments. These activities sit alongside Land Securities'investment portfolio, worth many billions of pounds, which includes a vast rangeof shopping centres and retail parks as well as London landmark buildings. Weare also involved in a major urban community development programme. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Land Securities