Retail Stores PLC
18 April 2005
FOR IMMEDIATE RELEASE
18th April 2005
RETAIL STORES Plc SELLS TWO PROPERTIES FOR £66.5M AND BECOMES DEBT FREE
Liberty owner Retail Stores Plc ('Retail Stores'), which is 68% owned by
Marylebone Warwick Balfour Group Plc ('MWB'), announces the sale of Lasenby
House, Kingly Street and the Liberty Island site, Regent Street to The Great
Victoria Partnership (No. 2), a joint venture between Great Portland Estates plc
and Liverpool Victoria Friendly Society, for a total consideration of £66.5
million in cash. The two properties currently generate a net annual rental
income of approximately £4.4 million.
The sale generates a pre-tax surplus on the 31st December 2004 book value of
approximately £3.5 million after sale costs. Retail Stores will use the proceeds
to repay its entire debt, which at 18th April 2005 stood at £61.9 million, thus
eliminating annualised interest charges of approximately £3.9 million.
Lasenby House is a freehold property which comprises approximately 25,500 sq ft
of office space let to Liberty Plc ('Liberty'), with a sublease on 17,600 sq ft
to MWB Business Exchange UK Limited ('Business Exchange').
The Liberty Island Site is held leasehold from the Crown Estate Commissioners
for a term expiring in July 2051. It comprises approximately 63,000 sq ft of
retail and office accommodation. The majority of the 36,000 sq ft of office
accommodation on 2nd to 6th floors is let on a single lease to MWB Business
Exchange with the remainder let to Liberty. Both leases expire in February 2016.
The remaining 27,000 sq ft is retailing on basement, ground and first floors
occupied by Liberty, Gap and Barclays Bank.
Richard Balfour-Lynn, Chairman of Retail Stores, said: 'This is a positive deal
for the Company as it enables us to repay all our debt and focus resources on
developing Liberty designed luxury goods aimed at the international market. As a
result of this sale, the financial structure of Retail Stores has been greatly
enhanced, thus underpinning the core operations of the business.
'Since Autumn 2004, Liberty has been proving increasingly popular and our sales
have improved dramatically at a time when many retail groups have reported flat
or declining sales.'
Contacts:
Richard Balfour-Lynn, Chairman, Retail Stores. Tel: 020 7706 2121
Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
BBBZ
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.