Proposed Joint Venture,etc
BRITISH LAND COMPANY PLC
13 July 1999
BRITISH LAND AND HOUSE OF FRASER IN NEW JOINT VENTURE PARTNERSHIP
The British Land Company PLC is pleased to announce the creation of a jointly
controlled property venture, to be known as BL Fraser Limited, which will own
and leaseback fifteen of House of Fraser's freehold and long leasehold
department stores.
The properties have been independently valued at £172.7 million. The leases
are on a full repairing and insuring basis for a term of forty years with five
yearly upward only rent reviews, and guaranteed minimum rent escalations of 3%
per annum compound at the fifth and tenth year. Total initial net annual rents
receivable by BL Fraser Limited are £12,882,000. The stores are located at
high street locations around the country, mostly in major provincial towns and
cities.
The joint venture will be financed by a £125 million bank facility with the
balance of approximately £24 million each provided by the joint venture
partners. British Land intends to fund its contribution from its existing
resources.
For British Land the principal attractions of this joint venture are:
- increased exposure on a geared basis to the retail sector
- acquisition of high quality freehold and long leasehold properties with good
geographical spread on long occupational leases
- guaranteed minimum rent escalations, at the fifth and tenth year, of 3% per
annum compound
- management opportunities to enhance capital and income growth
Completion of the joint venture is conditional on the passing of an ordinary
resolution by the shareholders of House of Fraser PLC at its Extraordinary
General Meeting to be held on 30th July 1999.
Enquiries to:
John Ritblat, Chairman The British Land Company PLC
Cyril Metliss, Director 0171 486-4466
Robert Bowden, Director
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