23rd Mar 2006 08:30
Land Securities Group Plc23 March 2006 23 March 2006 LAND SECURITIES GROUP PLC ("Land Securities"/"Group") LANDFLEX LETS EASTBOURNE TERRACE Land Securities has exchanged contracts with CB&I, a leading internationalengineering contractor, for a single building property outsourcing contract atthe 83,000 sq ft Landflex building at 40 Eastbourne Terrace, Paddington W2. CB&I will move from its existing accommodation at 10-30 Eastbourne Terrace intothe newly refurbished 40 Eastbourne Terrace taking a Landflex solution whichincludes: • An institutional lease of more than 10 years. • A separate maintenance and service agreement through which Landflexwill provide repairs, maintenance and life cycle replacement for the duration ofthe lease as well as providing security and cleaning services. • Rent at £35 per sq ft together with additional income from theservices contract. Commenting, Mike Hussey, Land Securities' Managing Director, London Portfoliosaid: "We are delighted to retain CB&I as a customer. The market has respondedwell to Landflex which has become an integral part of our product offer inLondon - and, as this latest letting demonstrates, it appeals equally to a majorbusiness as it does to smaller companies." From its launch just over three years ago, the Landflex portfolio now comprisesfour buildings which provide nearly 700,000 sq ft of office accommodation acrosscentral London. Land Securities continues to seek additional properties to addto the portfolio which they anticipate growing to about 1.5 million sq ft in themedium term. In addition to 40 Eastbourne Terrace, the existing Landflex portfolio comprises: • 7 Soho Square W1 (approximately 42,000 sq ft), the first Landflexproperty, which was fully let nine months after launch and where the firstoccupiers are in the process of renewing their initial leases. • Empress State, Earl's Court SW6 (approximately 440,000 sq ft) was letto the Metropolitan Police Authority under a single building propertyoutsourcing Landflex solution. This included the provision of accommodation andservices together with a Landflex sub-letting package. • 140 Aldersgate Street EC1 (approximately 82,000 sq ft), acquiredvacant in 2005, is now 62% let with 30,000 sq ft available to let immediately.Occupiers include Flightbookers Ltd, Millgroup Services Ltd and Vibrant MediaLtd. At 10-30 Eastbourne Terrace, 80,000 sq ft is occupied by CB&I under variousleases which expire in 2010. It is anticipated that they will relocate to 40Eastbourne Terrace over the summer at which time their leases at 10-30Eastbourne Terrace will terminate. This building is being evaluated as apossible additional Landflex facility. For further information please visit www.landflex.co.uk or contact: Land SecuritiesMike Hussey / Matt Harrington / Emma DenneTel: + 44 (0)20 7413 9000 Financial DynamicsStephanie Highett/Dido LaurimoreTel: + 44 (0)20 7831 3113 NOTES TO EDITORS About Landflex Landflex is an integrated accommodation package that allows a company to matchtheir business accommodation requirements to their business plan and reducetheir total accommodation costs. This is achieved by providing a blend of leasesin specially designed buildings and a range of customer services. Landflex was created by Land Securities, the UK's largest listed propertycompany, following feedback from its existing customers and in response to theneeds of modern businesses. Landflex substantially exceeds the requirements setby the Code of Practice for commercial leases which requests that landlordsoffer priced alternatives to their tenants on a number of aspects of their leaseincluding length, rent review process and break clauses. Land Securities aims to expand Landflex to some 1.5 million sq ft across CentralLondon in the medium term. With the success of the first two Landflex buildings,an active search is underway for additional buildings. About CB&I CB&I executes on average more than 700 projects each year and is one of theworld's leading engineering, procurement and construction (EPC) companies,specializing in lump-sum turnkey projects for customers that produce, process,store and distribute the world's natural resources. With more than 60 locationsand approximately 11,000 employees throughout the world, CB&I capitalizes on itsglobal expertise and local knowledge to safely and reliably deliver projectsvirtually anywhere. Information about CB&I is available at www.CBI.com. About Land Securities Land Securities is a FTSE 100 company and has been leading the UK's commercialproperty industry for over 60 years. The Group is the UK's largest quotedproperty company and its activities involve investment, development, managementand the provision of property services to a wide range of occupiers. Itsbusiness focus is on three markets: retail property, London offices and propertyoutsourcing. It manages over 70 million sq feet of commercial accommodation. It has an £11.5 billion investment portfolio stretching the length and breadthof the United Kingdom from Portsmouth in the south to Aberdeen in the north. Itowns 32 shopping centres, 28 retail parks and more than 11 million sq ft ofcommercial property in Central London. It has a further 3,000 properties undermanagement through its property outsourcing business. The Group employs 1,500 people across the UK. Its major office locations areLondon, Leeds and Glasgow. 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