Land Securities Group Plc
08 March 2007
8 March 2007
For immediate release
LAND SECURITIES TRILLIUM LANDS ROYAL MAIL PORTFOLIO
Land Securities Group PLC announces that its property partnership business Land
Securities Trillium ('LST') has completed the acquisition of a portfolio of 285
properties from the Royal Mail, for around £70 million.
Of the portfolio, a total of 108 leasehold properties are vacant and surplus to
Royal Mail's operations, the responsibility for which will now pass to Land
Securities Trillium. These vacant properties will be refurbished by LST with a
view to securing new occupiers.
The remaining 177 freehold properties, where only part of the space is being
used by Royal Mail for operational purposes, will be leased back by LST to Royal
Mail for 15 years. Royal Mail will occupy just the space it needs within these
buildings. It is expected that the contract will become earnings enhancing for
LST from the second year of ownership onwards.
Commenting on the announcement, Ian Elllis, Chief Executive, Land Securities
Trillium, said: 'We are delighted to be entering into this partnership with the
Royal Mail, which we hope will be the start of a long and mutually beneficial
relationship. We have released capital for Royal Mail while providing them with
a flexible operational structure and relieving them of the burden of surplus
space.'
Martin Gafsen, Royal Mail's Property Director, added: 'We are delighted to have
reached agreement with Land Securities Trillium to take ownership of the
premises and space that Royal Mail no longer needs for its operation. This is a
key element in our drive to increase efficiency and compete effectively in the
UK postal market, which is now open to full competition. There will be no
impact on the high level of service that Royal Mail is delivering to customers.'
He continued: 'As part of the transfer, we will lease back only the space we
need. This deal represents just 3% of our total operating space, so we will
continue to own the vast bulk of the sites we use in our day-to-day operations.'
- Ends -
For further information, please contact:
Land Securities Trillium Financial Dynamics
Ian Ellis Stephanie Highett/Dido Laurimore
T +44 (0) 207 796 5500 T +44 (0)207 831 3113
Land Securities
Emma Denne / Melissa Winsor
T +44 (0) 207 024 5460 / 207 024 5462
Notes to Editors
Part of the Land Securities Group, Land Securities Trillium is one of the most
established and innovative names in property outsourcing. We focus on
understanding our customers' business and property requirements and meeting them
through excellent service and innovation. We manage and provide services to
numerous commercial properties nationwide, for a growing number of companies and
government departments. These activities sit alongside Land Securities'
investment portfolio, worth many billions of pounds, which includes a vast range
of shopping centres and retail parks as well as London landmark buildings. We
are also involved in a major urban community development programme.
This information is provided by RNS
The company news service from the London Stock Exchange
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