Acquisition

RNS Number : 6184L

London & Stamford Property PLC

03 August 2011

 



03 August 2011

LONDON & STAMFORD PROPERTY PLC

("London & Stamford")

Acquisition of Tesco Distribution Unit, Harlow for £22.9m

London & Stamford Property Plc (LSE: LSP.L) announces that it has exchanged contracts to purchase a distribution unit in Harlow for £22.9m (excl. costs), reflecting a property yield of 7.5%.

The property comprises a 273,115 sq ft distribution warehouse located in Harlow, four miles from the M11 and seven miles from the M25. The warehouse is leased to Tesco Stores Ltd. The unexpired lease term for a further 12.5 years to Tesco Stores Ltd is guaranteed by Tesco PLC. Tesco uses the facility to distribute to its stores in London and the South East.

The acquisition will be added to the existing South Eastern distribution assets held in a joint venture with Green Park Investments. It is anticipated that once leverage is applied the cash yield will be 12.07%. London & Stamford's equity commitment is expected to be £4.78m.

Raymond Mould, Chairman of London & Stamford Property, said:

"This acquisition sits very well with London & Stamford's existing distribution investment portfolio. It is a high quality asset offering an excellent cash yield combined with a secure tenant and in a prime location.

For further information contact:

London & Stamford Property Plc Raymond Mould Patrick Vaughan Martin McGann	Tel: [phone]
Kreab Gavin Anderson Richard Constant James Benjamin Anthony Hughes	Tel: [phone]

Notes to editors:

London & Stamford Property Plc was set up to exploit opportunities that it anticipated in the UK property cycle and is a group UK-REIT. The Company has a highly experienced management team and invests in commercial property, including office, retail and distribution real estate assets, principally in the UK.

The Company is traded on the London Stock Exchange's Main Market (LSP.L) and is authorised by the FSA to carry out certain regulated activities.

Further information on the Company is available from the Company's website: www.londonandstamford.com 

 

END

 

 

ACQUUSNRAWAWRAR