10th Jul 2007 18:12
British Land Co PLC10 July 2007 LARGEST SPANISH DEAL COMPLETES British Land has today completed the purchase of Spain's prime regional shoppingcentre and retail park in Murcia for €350 million in a joint venture with theclosed-end fund PREF, reflecting a gross initial yield circa 5 per cent. The deal is reported to be Spain's biggest single out-of-town retail investmenttransaction and confirms British Land/PREF's position as the largest owner ofout-of-town retail parks in Europe. Known as Nueva Condomina, the 120,000m2scheme has been acquired from Deparcom, a joint venture between Eroski and GrupoTrusam. Valentine Beresford, British Land said: "Selectively extending our investmentsin Europe is an important strategic step and a logical extension of our UKmarket leadership. There is an under provision of out-of-town shopping in manyEurozone markets with attractive supply/demand dynamics, similar to the UK,although much less mature. The Nueva Condomina development is a very rareopportunity to acquire a prime asset in a market where there is clear evidenceof a growing number of international retailers pushing into the country." Notes to Editors The shopping centre opened September 2006 and the retail park in May 2007. Thetwo storey enclosed shopping centre and the retail park are 100 per cent let.Notable retailers include Primark, FNAC, H&M, Leroy Merlin and Media Markt aswell as Zara, Massimo Dutti, Bershka, H&M, Benetton, Etam and Cortefeil. The 120,000m2 scheme encompasses a 60,200m2 two storey enclosed shopping centreand a 44,400m2 retail park. The shopping centre includes a 15 screen multiplexand a 13,700m2 Hypermarket. There is dedicated parking for 6,500 cars. Cushman & Wakefield advised British Land and PREF. British Land is the largest UK REIT by assets (£16.9 billion) with total assetsunder management of £21.3 billion, as at March 31, 2007. The portfolio, focused on the growth sectors of London Offices and Out of TownRetail, has the longest leases and occupancy rates amongst the highest of themajor UK REITs. Retail assets account for 56 per cent of the portfolio, 80 percent of which is in prime out-of-town locations. Offices account for 41 per centof the portfolio of which 97 per cent is London-based and includes a £4 billionoffice development pipeline coming to fruition between now and 2011. British Land's owned, contracted and managed assets in Europe are valued at €1.7billion as at March 31, 2007, and include retail parks in Spain, Italy, Portugal, Belgium, Switzerland and France through its property adviser role and 40 percent holding in PREF. Assets owned and committed in PREF total circa €1.1billion. Puerto Venecia, Zaragoza, is the circa €600 million retail and leisure schemebeing developed through a joint venture between British Land, a group ofEuropean private investors and the Spanish construction company Copcisa Corp. PREF is a seven year, closed-end fund created in 2004 investing in out-of-townretail parks in the Eurozone. PREF is advised by British Land European FundManagement, a partnership between British Land and Doric Properties Ltd. Tuesday, 10 July 2007 Media Enquiries: British Land: Laura De Vere Tel: +44 20 7467 2920/Mobile: + 44 (0)7739 292920 PREF: Dido Laurimore, Financial Dynamics, Tel: +44 20 7831 3113 Ends This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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