Strategic Initiative, etc Part 1
Great Portland Estates PLC
8 March 2000
PART ONE
GREAT PORTLAND ESTATES P.L.C. ('GREAT PORTLAND')
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GREAT PORTLAND ANNOUNCES A MAJOR STRATEGIC INITIATIVE:
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REFOCUSING OF THE PORTFOLIO; RETURN OF CASH TO SHAREHOLDERS; AND BOARD CHANGES
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PART I OF II
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Summary
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* The Board of Great Portland announces a major strategic initiative
to refocus the Group's property portfolio and return cash to
shareholders
* Associated with the disposal programme and subject to the requisite
approvals, the Board announces that it intends to return not less
than 80 pence per share (GBP 285 million) in cash to shareholders.
This represents approximately 40 per cent. of Great Portland's
current market value as at 7th March, 2000
* Great Portland has accelerated and widened its current disposal
programme with the intention of disposing of GBP 0.4 billion of
properties in total
* Great Portland's future focus will predominantly be on properties in
central London and shopping centres. By value the GBP 1.4 billion
portfolio will be
- 63 per cent. in central London
- 25 per cent. in shopping centres
* In addition, Great Portland intends to seek approval to renew the
authority to make market purchases from shareholders for up to a
further 15 per cent. of the issued ordinary share capital following
on from the recent purchase of approximately 5.5 per cent. of the
issued ordinary share capital
* Great Portland also announces that on 1st April, 2000, Richard
Peskin will become non-executive Chairman and Patrick Hall and Peter
Shaw will become joint Managing Directors; David Godwin will become
non-executive Deputy Chairman in July 2000
* It is intended that detailed proposals will be put to shareholders
on or before 6th June, 2000, when Great Portland will announce its
preliminary results for the year ending 31st March, 2000
Commenting, Richard Peskin, Chairman, said:
'Following a lengthy strategic review by the Board, the proposals announced
this morning represent a radical initiative which I am sure shareholders will
welcome. By accelerating the disposal of our non-core properties, we have
sought to capitalise upon the current strong investor demand and to speed up
the process of refocusing the Group.
In the current climate, in order to maximise shareholder value, we have
decided to use the majority of the disposal proceeds to finance a return of
cash of at least 80 pence per share. In addition, we will be seeking
shareholder approval at the Annual General Meeting in July 2000 to buy back up
to 15 per cent. of our share capital, following on from our proactive campaign
in February when we bought in 5.5 per cent. of our equity and thereby raised
pro forma March 1999 net asset value by 6 pence to 289 pence per share.
Following these actions, I believe that the Company will be capable of
delivering superior returns through a focused portfolio and will also be
capable of taking advantage of opportunities within its chosen markets.
Having been an executive director for over 31 years, I have decided that, with
the strategy in place for a slimmed down and refocused Great Portland, it is
an appropriate time for me to hand over the reins. The Board has invited me
to become non-executive Chairman with effect from 1st April, 2000, and David
Godwin will become non-executive Deputy Chairman on the retirement of Roger
Payton at the Annual General Meeting in July. Patrick Hall, who has been
Deputy Managing Director since 1994 and Peter Shaw, an Executive Director
since the same date, have been appointed joint Managing Directors with effect
from 1st April, 2000. They have an intimate working knowledge of the
portfolio, and, with their complementary skills, the Board has every
confidence that they provide an ideal combination to lead the Company into its
next phase.'
This summary should be read in conjunction with the attached announcement.
Enquiries
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Great Portland Estates P.L.C. Tel: 020 7580 3040
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Patrick Hall
Peter Shaw
John Whiteley
Lazard Tel: 020 7588 2721
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Nicholas Jones
William Rucker
Cazenove & Co Tel: 020 7588 2828
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Richard Cotton
Duncan Hunter
Citigate Dewe Rogerson Tel: 020 7638 9571
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Sue Pemberton
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