2nd Apr 2007 17:37
British Land Co PLC02 April 2007 CABLE & WIRELESS AND BRITISH LAND STRIKE DEAL British Land has today concluded an £88 million sale and leaseback deal withCable & Wireless for nine properties. The 25 year leases are RPI linked to a maximum of 6 per cent per annum compound.Initial rental income will be £4.54 million per year for the first five yearsand thereafter reviewed at five year intervals. The net initial yield is fiveper cent. The deal is the fourth addition this year to British Land's £2 billion portfolioof properties let on index-linked or minimum uplift rental agreements. The majority of the Cable & Wireless properties in the portfolio are located inLondon and operate as offices and network sites. The total floor area is 356,000sq ft. Bob Bowden, British Land Investment Director, said: "RPI-indexed leases provideus with security of income and good cash flow growth from the fixed uplifts.This transaction adds to our investments in the important London office sectorwhere we expect rental value growth to exceed RPI and to be recognised invaluations and captured at lease expiry." Clay Street Property Investment Consultants and CCRE acted for British Land.Doherty Baines acted for Cable & Wireless. Notes to Editors •Six of the Cable & Wireless properties are located in London - SE1, N1, SE8, E1, SW8 - two in Birmingham and one in Belfast. •British Land recently concluded sale and lease back deals with Tesco, TGI Friday's and Somerfield. •British Land, flagship of the new REIT regime in the UK, is Europe's largest property company measured by assets. Its property portfolio, owned and managed, is valued at £20.4 billion as at December 31, 2006. •The portfolio is focused on London Offices and Out of Town Retail. For media enquiriesBritish Land: Laura De Vere - 020 7467 2920/mobile 07739 292920Finsbury: Faeth Birch/Ed Simpkins - 020 7251 3801 Date: 02 April 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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