5th Jan 2005 13:06
Land Securities Group Plc05 January 2005 5 January 2005 LAND SECURITIES GROUP PLC ("Land Securities") Land Securities purchases London properties Land Securities announces that it has acquired two London office properties fora total of £110.7m. City Forum, EC1 was purchased from REIT Asset Management for £43.7m. The 12,230sq m (131,640 sq ft) scheme, comprising 13 buildings, is situated on the edge ofthe City core and offers well-secured income of £2.9m per annum, representing aninitial yield of 6.5%. Occupiers include Goldman Sachs, Deloitte & Touche LLPand NatWest. The scheme offers medium-term redevelopment potential and Land Securitiesintends reviewing the development strategy for the property, which benefits froman existing planning permission for an office development in the centre of thesite. Contracts have also been exchanged for the purchase of the Red Lion Court,Bankside and Park Street, SE1 from Jesta Corporation for approximately £67m.The 11,920 sq m (128,324 sq ft) office building is let to Lloyds TSB andcurrently produces rent of £4.3m per annum, providing an initial yield of 6.4%. This acquisition further consolidates Land Securities' holdings in Southwark,where it is now developing Bankside1 on behalf of IPC Media and where it hasplanning consent for a further two commercial properties on the Bankside123scheme adjacent to Tate Modern. Land Securities is also preparing plans for aresidential development on a site nearby and will be developing some affordablehousing at 20 Blackfriars Street. Mike Hussey, Managing Director, London Portfolio at Land Securities, commented: "The acquisition of City Forum will give us the opportunity to generate a goodincome return from a medium term redevelopment prospect. In due course we willsubmit a new planning application for the scheme with a significant residentialcomponent. "Red Lion Court provides stable and improving income off a sensible rental baseof £34 per square foot and will benefit from our own and others' considerableinvestment into the Bankside area." On the City Forum transaction, Jones Lang LaSalle acted for Land Securities andFranc Warwick acted for REIT Asset Management. On the Red Lion Court acquisition, FPD Savills acted for the Jesta Corporationand Strutt & Parker acted for Land Securities. -ends- For further information please contact - Land SecuritiesMike Hussey/Melissa Winsor020 7413 9000 Financial DynamicsStephanie Highett/Dido Laurimore020 7831 3113 Note to Editors Land Securities is a FTSE 100 company, quoted on the London Stock Exchange. Ithas been at the forefront of the UK's commercial property industry for 60 years.Today, the Group maintains its market leading position as the UK's largestquoted property company by providing commercial accommodation and propertyservices to a wide range of occupiers. The Group's objective is to createattractive and sustainable returns for its shareholders through its activities,which include property investment, development and property outsourcing. Land Securities holds a market leading position in three areas of the UKcommercial property market: • Retail• Central London offices and• Property outsourcing. Its £8 billion investment portfolio includes more than 810,000 m2 of officespace in Central London and substantial retail holdings in Oxford Street,Tottenham Court Road and Notting Hill Gate. In addition the Group owns 18shopping centres and 25 retail parks located across the UK. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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