JV Property Sale
British Land Co PLC
10 August 2006
10 August 2006
NORTHAMPTON SHOPPING CENTRE TO CHANGE HANDS
The Tesco British Land Property Partnership Limited has exchanged contracts to
sell its interest in the edge-of-town Weston Favell Shopping Centre,
Northampton.
The partnership, a 50:50 joint venture between Tesco and British Land, expects
to complete the £122 million sale of this 307,800 sq ft scheme to private
investors later this month.
The sale of the freehold delivers an initial yield of 4.75 per cent and Tesco
will continue to anchor the scheme with its 157,000 sq ft store. The remainder
of the shopping centre is let primarily to national multiples and a range of
local retailers.
Weston Favell was one of 12 properties which formed the original Tesco British
Land Property Partnership in 1998. Since then, the partnership extended Weston
Favell by 60,000 sq ft, added a petrol filling station and re-geared the Tesco
lease.
Neil Earp, Tesco Property Director, said: "This is an opportunistic sale which
takes advantage of the current strong investment market for retail assets that
are let to national retailers. It is consistent with our strategy of raising
cash from our property portfolio whilst retaining operational flexibility. We
remain committed to serving our customers in Weston Favell."
Note to Editors:
•Tesco remains the anchor tenant of the scheme, with a 22 year RPI linked
lease.
•The Centre attracts around 120,000 shoppers a week and provides 1,150 car
parking spaces.
•Tesco and British Land have three property joint ventures, with assets
totalling £1.15 billion as at 31 March 2006. The properties included: 4
Retail Parks, 4 Shopping Centres and 13 Tesco stores.
•The Tesco British Land Property Partnership appointed Morgan Williams and
Jones Lang LaSalle to market the property to interested parties.
•Churston Heard acted for the purchaser.
Contacts
Tesco Plc:
Tony Fletcher, Corporate Affairs 01707 287 471
The British Land Company PLC:
Tim Roberts, Director and Co Head of Asset Management 020 7467 2977
Laura De Vere, Director Corporate Communications 020 7467 2920
This information is provided by RNS
The company news service from the London Stock Exchange
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