2nd Jan 2007 07:01
Land Securities Group Plc02 January 2007 2 January 2007 Land Securities Group PLC ("Land Securities" / "Group")LAND SECURITIES CONFIRMS CONVERSION TO BECOME ONE OF THEWORLD'S LARGEST REAL ESTATE INVESTMENT TRUSTS Land Securities confirms that as at 1 January 2007 it has now elected RealEstate Investment Trust ("REIT") status. This follows acceptance by HM Customsand Revenue of its notification letter in late December 2006. The Group will now be carrying out the required valuation of its qualifyingproperty assets to establish the precise amount of the 2% conversion charge,expected to be around £300m and due to be paid in full in July 2007. TheDecember valuation is a one-off exercise and will include an external valuationof both the investment portfolio and also the qualifying properties held by LandSecurities Trillium, representing the first valuation of these assets sinceTrillium was acquired in 2000. It is anticipated that the results of thisvaluation exercise will be announced to shareholders in February 2007. Commenting on the conversion, Francis Salway, Land Securities' Group ChiefExecutive, said: "From 1 January, we have become one of the three largest REITs in the world andthe UK's largest REIT by market capitalisation. REIT investors can benefit fromour market leading positions in London offices, retail and property partnershipsas well as our long-term track record of generating strong returns for ourshareholders. The tax efficiencies afforded by this change in status willresult in an enhanced future dividend and we are confident that Land Securitieswill be one of the UK real estate investment vehicles of choice for both UK andinternational investors. "We concluded 2006 with one of our largest ever transactions in the acquisitionof the Secondary Market Infrastructure Fund. Backed by our new REIT status, anewly appointed chairman, Paul Myners, and an evolving business model, we lookforward to 2007." -Ends- For further information, please contact:Francis Salway / Emma Denne Stephanie HighettLand Securities Financial DynamicsT +44 (0)20 7413 9000 T +44 (0)20 7831 3113 Notes to Editors Land Securities Group PLC Land Securities is the UK's leading real estate investment trust. Our nationalportfolio of commercial property, worth many billions of pounds, includes someof Britain's best-known shopping centres, such as the Birmingham Bullring andGunwharf Quays in Portsmouth, as well as London landmarks such as the PiccadillyLights and Westminster City Hall. We are leading urban renaissance through ourbillion pound development programme, transforming Exeter, Bristol and Cardiffcity centres as well as key sites in Central London. We are also one of theleading names in property partnerships and through urban community developmentare involved in long-term, large-scale regeneration projects in the south-east.www.landsecurities.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Land Securities