1st Aug 2006 10:14
1st August 2006 Slough Estates in ‚£109 million disposal Slough Estates International ("SEI") announces it has completed the disposal ofthree properties: the Deva Retail Centre, Chester, an estate in South Ruislip,and a development at Kingswood, Ascot; for a total of ‚£109.2 million. Thedisposals are the latest actions carried out as part of SEI's capital recyclingstrategy.SEI has sold the Deva Retail Centre, Chester together with a retail warehouseand industrial premises at South Ruislip, in a combined transaction to CMG/Insight for ‚£73.5m. CMG/Insight already owned neighbouring property. Together,these two assets total 18,437 square metres and the disposals represent anattractive overall initial yield of 4.22% (4.42% on Chester and 3.75% onRuislip) and were sold at ‚£3m above the book value as at 31 December 2005. Thepassing rent totalled ‚£3.3m, with a vacant 945 sq m building at the Chestersite.SEI has also sold Kingswood Ascot to UKCP (Four) Ltd for ‚£35.7 million. Locatedon the outskirts of Ascot and fronting the A332, Kingswood is a low-densityoffice development consisting of three Civic Trust Award winning buildings,designed by Norman Foster. It is currently rented to Agere Systems Ltd at ‚£2.6mper annum. This sale of the 9,350 square metre estate reflects an initial yieldof 6.8% reflecting the short term nature of the income stream (currentoccupant's lease expires in 2013), the disposal price was closely in line withbook value.John Heawood, Executive Director responsible for the UK Portfolio, said:"These transactions continue our active acquisition and disposal programme, aswe recycle mature assets when there is a good opportunity to realise valuecreated. It also reflects the on-going strategic realignment of SEI's propertyportfolio, moving away from out-of-town office facilities and discrete retailwarehousing facilities and building on our position as Europe's leadingproviders of flexible business space. These disposals follow further recentexamples of the implementation of this strategy - with the purchase of theTreforest Industrial Estate, Cardiff and the sale of properties at CentennialPark, Elstree and Cambridge Research Park, Cambridge" - ENDS - Further information:Slough Estates The Maitland Consultancy Michael Waring Colin Browne 01753 213335 020 73795151 Notes to editorsSlough Estates is the leading European provider of flexible business space andowns business parks in Europe and North America, with four million squaremetres of business space and over 1600 customers (as at 31 December 2005).Slough Estates' properties are in suburban locations in close proximity to themain business centres, where there is long term demand for businessaccommodation to serve these key economic regions. The company's mainactivities are currently based around London, Brussels, Paris, Dƒ¼sseldorf,Amsterdam, San Francisco and San Diego and the company continues to develop newbusiness parks with the long term objective of building shareholder value andenhancing its reputation for quality buildings offering excellent value tocustomers. www.sloughestates.comSEI will report its interim results on Wednesday 23rd August.ENDSLOUGH ESTATES PLCRelated Shares:
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