19th Jan 2007 11:49
19 January 2007
SLOUGH ESTATES' CAPITAL RECYCLING STRATEGY SEES FURTHER SALE AT ELSTREE AND NEW
ACQUISITION IN PETERBOROUGH Slough Estates International ("SEI"), a leading provider of flexible businessspace, has completed the sale to ING Real Estate of its Phase 300, CentennialBusiness Park in Elstree for ‚£21 million.
The sale encompasses 12 production/warehousing units totalling 10,735 sqm, providing rental income of ‚£1,338,000 per annum. The price reflects a net initial yield of 5.97%.
This latest transaction follows a phased sale of properties on the Park aimedat recycling capital. The first sale was Phases 100 and 200 to Morley FundManagement in November 2005 for ‚£35 million, followed by the sale of Phases 600and 700 to the Scarborough Group in January 2006 for ‚£16 million. Phases 100and 200 comprise 22,466 sqm of production/warehousing space in 16 units andPhases 600/700 comprise four office buildings totalling 6,285 sqm.SEI is currently developing Centennial Business Park's Phase 400 "Northpoint"freehold-for-sale scheme, made up of 21 business units totalling 7,250 sqm anddue for completion in Summer 2007. Contracts have also been exchanged with DeVere for one of its "De Vere Village" hotels, subject to planning, which willprovide amenity to the businesses located in the Park.SEI has also acquired the Manasty Road Industrial Estate in Peterborough for ‚£17.5 million. This multi-let industrial estate, strategically located adjacentto Junction 17 of the A1(M), extends to 7.8 Ha and provides 28,984 sqm ofbusiness space in 45 units, used mainly for warehousing and light industrialpurposes. The passing rent is ‚£867,020 per year and major tenants include theInland Revenue and ChoicesUK, the home entertainment company.
The acquisition extends SEI's portfolio into a new geographic location and presents good potential for growth - already there is interest from prospective tenants, with one new letting and two further units under offer.
John Danks, Regional Director for North London and East of England commented:"These transactions demonstrate an active acquisition and disposal programmeacross the region. We are recycling mature assets when there is a goodopportunity to realise value created, whilst investing in areas where we canadd value from asset management or development. Our recent management ofCentennial Business Park has realised value for the business and has enabledinvestment in areas such as Peterborough, which will in turn expand ourpresence in the North London & East region."For Centennial Business Park, SEI were advised by Jones Lang LaSalle and INGReal Estate by Strutt and Parker. For Peterborough, SEI were advised by DriversJonas.
For further information please contact:
Slough Estates Michael Waring, Director of Corporate Communications
Tel: 01753 213335 Maitland Peter Ogden Tel: 020 7379 5151 Notes to editors
Slough Estates International (SEI)
The leading European provider of flexible business space, SEI owns businessparks in Europe and North America, with property assets of ‚£5.6bn, more thanfour million square metres of business space and more than 1,700 customers. SEIhas an annual rent roll of ‚£289m and a weighted average unexpired lease lengthof 11.9 years. Flexible business space is industrial sites or business parksput to multiple uses such as; manufacturing, light industrial, distribution(both `small' and `big-box'), research and development, offices andwarehousing. SEI's properties are in suburban locations in close proximity tomain business centres with long-term demand for business accommodation. Thecompany continues to develop new business parks with the long-term objective ofbuilding shareholder value and enhancing its reputation for quality buildingsoffering excellent value to customers. (Figures quoted as at results to 30
June2006)www.sloughestates.comPhotographs
* Unit 370 of Phase 300 Centennial Park, leased at the beginning of 2005 to
Apatech, a global leader in synthetic bone graft technologies. http:// www.sloughestates.com/seiimages/centennial_park_300_elstree.jpg * Aerial view of the Manasty Road Industrial Estate, with boundary line marked in red http://www.sloughestates.com/seiimages/ manasty_road_aerial.jpg
SLOUGH ESTATES PLCRelated Shares:
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