24th Jul 2007 11:45
St. Modwen Properties PLC24 July 2007 St. Modwen Properties plc Elephant and Castle decision St. Modwen Properties PLC ("St Modwen") is the UK's leading regenerationspecialist The Board of St Modwen has noted with regret today's decision by the LondonBorough of Southwark ("Southwark") to select Lend Lease rather than Key PropertyInvestments ("KPI") as its preferred development partner for the Elephant andCastle project. KPI has strategic landholdings in the project area not least the Elephant &Castle shopping centre and will therefore naturally be involved in theprogression of the scheme. Anthony Glossop, Chairman of St Modwen, comments: "I am obviously disappointed with the decision as our team has worked closelywith Southwark over a period of five years and made an excellent submission.However, I welcome the fact that a decision has been made because it brings toan end a long period of uncertainty and enables the project to move forward. Whilst the regeneration programme will be driven forward by Lend Lease andSouthwark Council, KPI will be seeking to liaise with them at the earliestpossible opportunity, and establishing redevelopment timescales for the shoppingcentre will be central to these discussions. Other key stakeholders such as thetraders in the existing centre deserve a clear statement on the timescale ofwhat lies ahead. KPI's asset value is not in any way adversely affected by the decision. Bidcosts have been written off as they were incurred, and the value of KPI'sholdings should benefit as the scheme becomes a reality." 24 July 2007 ENQUIRIES: St. Modwen Properties PLC Tel: 0121 222 9400Anthony Glossop, ChairmanBill Oliver, Chief Executive College Hill Tel: 020 7457 2020Matthew Gregorowski NOTE TO EDITORS: The 235,000 sq.ft Elephant and Castle shopping centre and 90,000 sq. ft HannibalHouse office building above, became one of the UK's first major town centreredevelopments when it opened in 1964. It was acquired by KPI in 2002 and since that time the shopping centre andoffices have been carefully and actively managed. This has resulted in a broadtenant mix comprising a blend of national and local traders and businesses, allof whom serve the local community. This strategy has served to protect rentalincome from the asset, whilst preserving the opportunity to utilise itsstrategic position in the long-term regeneration of the area. Tenants at the shopping centre include Tesco, Boots, WH Smith and Woolworths. KPI also has a land holding on the Walworth Road, within the Elephant & CastleRegeneration area, currently let to Kwik-Fit. KPI is a joint venture between St Modwen Properties Plc and Salhia Real EstateCompany K.S.C. This is a long established joint venture, formed in 1996 andcurrently comprises a £350m portfolio of development properties spread acrossthe UK. St Modwen is the UK's leading regeneration specialist and is quoted on the UKstock market. Salhia is a real estate development and investment company quoted on the Kuwaitstock exchange. The group has an established reputation for the development andlong-term ownership of major mixed-use projects in Kuwait. Salhia has beeninvesting in the UK and Germany for over 10 years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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