11th Apr 2005 09:02
British Land Co PLC11 April 2005 11th April 2005 British Land acquires six Homebases, a food superstore and takes back theSainsbury's lease at Meadowhall The British Land Company PLC has purchased five Homebase stores from Sainsbury'sSupermarkets Ltd for £52M. The stores are located in Birkenhead, Derby, Ipswich,Rayleigh Weir and Tunbridge Wells, and total 181,000 sq ft(16,815 sq m) and will be owned by British Land under new 150 year leases. All of these Homebases share the same sites as existing Sainsbury's food storesand enjoy open A1 planning consents. All of the stores are leased to HomebaseLimited with an average of 12 years unexpired, producing a current income of£2.35M (£13 per sq ft average). The purchase will show an initial return of4.22%. British Land has also acquired a 93,000 sq ft (8,640 sq m) food superstore fromSainsbury's on an 11-acre site in Crawley. The superstore lease is guaranteed byJ Sainsbury Plc for a new term of 30 years with 5 yearly upward only rentreviews at a starting rent of £1.9m pa based on a store rent of £19.50 per sqft. The site also contains a 43,500 sq ft (4,050 sq m) Homebase, car wash,petrol-filling station and drive-though McDonalds. The initial payment of £47.4Mreflects an initial yield of 5.25% and will be subject to a further top-upcapital payment on the settlement of the Homebase rent review due in December2005. In a connected transaction British Land has contracted to purchase back theSainsbury's lease of the 100,000 sq ft food store at Meadowhall. Bob Bowden,Property Investment Director of British Land commented, "I am delighted tosecure this accommodation at Meadowhall as it offers a number of significantopportunities to enhance the tenant mix". As part of the linked transaction British Land has undertaken to sell theSainsbury's store at Selly Oak back to Sainsbury's, to facilitate theregeneration of the Selly Oak area. British Land was advised by Colliers CRE and Smith Young and Sainsbury byGilbert Bath and Angermann Goddard & Lloyd. Contacts The British Land Company PLC: Tel: 020 7467 2892Bob Bowden, Property Investment DirectorJohn Weston Smith, Chief Operating Officer Tel: 020 7467 2899 Finsbury: Tel: 020 7251 3801Edward Orlebar This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
British Land