14th Nov 2007 07:01
Sainsbury(J) PLC14 November 2007 14 November 2007 Sainsbury's announces new property joint venture Sainsbury's today announces a joint venture (jv) with Land Securities, whichwill combine the retail and development expertise of the two companies todevelop Sainsbury's anchored developments. Initially the 50:50 jv, called 'The Harvest Partnership', will run for a term ofseven years and will own the freeholds of three properties to a market value of£113.4 million. These sites have significant potential beyond standardextensions to the Sainsbury's stores and may include mixed-use development.Both partners intend to add properties to the Partnership as well as activelypursuing other suitable opportunities together. Peter Baguley, Sainsbury's property director said: "This joint venture is partof the active management of our property portfolio, outlined in May, and givesus access to the specialist development skills of Land Securities. It allows usto maximise the potential at each site, improving both our customer offer andthe value of the property, whilst retaining operational control and flexibility." Richard Akers, managing director of retail at Land Securities said: "This jointventure means we access key development opportunities and gain a partnershipwith one of the UK's leading retailers. These three sites all have potentialfor development which we can help unlock through our expertise. "We are very excited about this opportunity and look forward to a long andsuccessful partnership which increases in size as other suitable opportunitiesare identified." In a separate transaction, Sainsbury's has exchanged contracts to purchase twoexisting stores from Land Securities in Winchester and Wednesfield. -ends- Enquiries: Sainsbury's Investor Relations Sainsbury's Media Elliot Jordan Gillian Taylor+44 (0) 20 7695 4931 +44 (0) 20 7695 2750 Notes: - 1. The transaction initially includes two Sainsbury's freehold stores in Thanet and Wandsworth, and one Land Securities owned site, where Sainsbury's is a tenant, in Hull. 2. Land Securities and Sainsbury's have an existing landlord tenant relationship on a number of trading sites. 3. 62 per cent of Sainsbury's properties are freehold or long leasehold and the company's property portfolio was valued at £8.6bn in March 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sainsbury's