22nd Feb 2006 12:00
St. Modwen Properties PLC22 February 2006 St. Modwen Properties PLC Nanjing signs 33-year lease agreement to secure Longbridge car production A landmark agreement, which opens the way for future car production atLongbridge, Birmingham, was signed today (February 22) between the site ownersSt Modwen Properties PLC and Nanjing Automobile Corporation (UK) Limited ("NAC"). The agreement is for Nanjing to take a 33-year lease at a rent rising from £1.8mper annum on 105 acres of the 469-acre site. This comprises the South Works ofthe former MG Rover plant, which incorporates two car assembly plants, the paintshop and administrative offices, together totalling more than 2m sq.ft. Thelease terms incorporate a six-month break clause in case Nanjing is unable toconfirm a viable long term future for the site. Bill Oliver, Chief Executive of St Modwen Properties, described the agreement asopening a new chapter in the long history of car production in Birmingham: "We always said that if there was a viable plan for a long term automotive useat Longbridge, we would do our best to facilitate it. This agreement is theoutcome of that commitment, and we are now looking forward to a long andfruitful relationship with Nanjing. We are hoping that with this agreementestablished, the other regeneration proposals proceed speedily through theplanning process, to bring forward the creation of further jobs and providemajor improvements to the Longbridge area." Mr. Wang Hongbiao, Chairman of Nanjing Automobile Corporation (UK) Limited said: "I am delighted that we have reached an arrangement with St. Modwen Properties.This means that we can move forward with our business plan to build cars atLongbridge. The MG Brand is famous and we are proud to project it into anexciting future. We are grateful for the help and support Birmingham CityCouncil has given us throughout this process and look forward to working withthem in the future." Cllr. Mike Whitby, Leader of Birmingham City Council, added: "Since the announcement of the closure of MG Rover in April 2005, I have beendetermined to bring about a resumption of car building at the historicallysignificant site of Longbridge. We have worked tirelessly with NAC to develop arelationship of trust and confidence - which are the essential pre-requisites ofany deal. "NAC asked Birmingham City Council to be its strategic partner in itsnegotiations with St Modwen. We have given them advice and support on issuessuch as regeneration and planning which has culminated in today's announcement.As a result of the deal we will witness today, we have created hope andopportunity for the people of Longbridge and Birmingham. We have alsosafeguarded the MG brand in Birmingham, and I would like to congratulate bothNAC and St Modwen for their efforts in bringing this tremendous deal together". 22 February 2006 ENQUIRIES: St. Modwen Properties PLC www.stmodwen.co.ukBill Oliver, Chief Executive 0121 222 9400Tim Haywood, Finance Director College Hill www.collegehill.comGareth David 020 7457 2020 / 07774 444 162Matthew Gregorowski NOTE TO EDITORS St Modwen acquired 412 acres of the Longbridge site in two deals in 2003 and2004 for £57.5m and leased it back to MG Rover. Besides the 105 acres let toNanjing, 181 acres are earmarked for mixed use development. In addition, thereis 126 acres of agricultural land and the 57 acres Longbridge Technology Parkbeing developed by St Modwen and Advantage West Midlands. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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