21st Mar 2007 07:01
British Land Co PLC21 March 2007 NEW SUPERSTORE JOINT VENTURE The British Land Company PLC and Tesco plc have formed a new £650 million JointVenture. The limited partnership incorporates 21 Superstores across the UK, alloccupied by Tesco. It brings the number of joint ventures between the twocompanies to four. The new joint venture has a 20 year term with an earlytermination option in 2017. The portfolio has an initial rent of £29 million pa secured against 21 highquality food stores. The rents are subject to annual RPI indexed increases forthe first 20 years capped at 3.5% pa, with open market reviews in year 20 andoptions at that date for Tesco to either renew or buy back the stores at openmarket value. The occupational leases have been structured to provide operational flexibility,in keeping with Tesco's strategy of continued investment, refreshment and growthof its store portfolio. This customer focused approach also reflects BritishLand's retail investment strategy. Robert Bowden, British Land's Investment Director, said: "We are very pleased toconclude this transaction with Tesco, increasing our investment in one of ourfavoured retail sectors where we see significant growth potential. Theacquisition also adds to our portfolio of investments with indexed or minimumrent increases, now amounting to over £2 billion." Colliers CRE advised British Land on the purchase and Tesco were advised byMorgan Williams. Notes to Editors •Tesco and British Land have three other property joint ventures, the first of which was formed in 1996. Assets in the joint ventures total £1.16 billion as at December 2006. The joint ventures include: 4 Retail Parks, 3 Shopping Centres and 13 Tesco stores. •British Land owns or manages real estate valued at £20.4 billion as at December 2006 and has the largest property portfolio under management of the UK REITs. •British Land is the largest owner of superstore properties in the UK other than the occupiers themselves. Date: 21 March, 2007 Contact for media enquiries: Laura De Vere tel: 0207 467 2920The British Land Company PLC mobile: 0773 929 2920 FinsburyFaeth Birch tel: 0207 251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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