Acquisition

RNS Number : 6795F

London & Stamford Property Ltd

18 January 2010

 



LONDON AND STAMFORD PROPERTY LIMITED

Registration No. 47816

Registered Office:

2ND FLOOR, REGENCY COURT, GLATEGNY ESPLANADE, ST. PETER PORT,

GUERNSEY, GY1 3NQ.

___________________________

TELEPHONE: + 44 1481 720321

FACSIMILE: + 44 1481 716117

E-MAIL:  [e-mail]

18 January 2010

Acquisition of Focus National Distribution Centre, Tamworth

London & Stamford Property Limited ("London & Stamford") today announces that it has exchanged contracts with the Clerical Medical Investment Group for the purchase of a freehold distribution unit at Tamworth for £33.3m, an initial yield of 9.5%. The 584,632 sq ft unit is let to Focus DIY for a further 14 years and operates as its national distribution centre.

Raymond Mould, the Non-executive Chairman of London & Stamford, said:

"We are delighted to have made this excellent acquisition.  The centre is exceptional by virtue of its size and prime location as Focus's sole distribution centre.  London & Stamford has again proven that it can respond quickly to attractive investment opportunities yielding a cash return of 9.5% and reflecting a price below the replacement cost of the unit. The acquisition has been made entirely out of cash reserves, but we will consider applying leverage in the future. "

Enquiries:
Kreab Gavin Anderson Richard Constant / James Benjamin / Anthony Hughes	Tel: [phone]
London & Stamford Property Limited  Rochelle Thompson Butterfield Fulcrum Group (Guernsey) Limited,  Company Secretary	Tel: [phone]
KBC Peel Hunt Capel Irwin / David Anderson /Anthony Bell(Corporate Finance)  Nicholas Marren / Marianne Woods (Corporate Broking)	Tel: [phone]

Notes to Editors

London & Stamford Property, a closed-ended investment company based in Guernsey, is advised by LSI Management LLP ("LSIM") which has a highly experienced management team. The principal partners of LSIM include Raymond Mould, Patrick Vaughan, Martin McGann, Jeremy Bishop and Stewart Little. Raymond Mould, Patrick Vaughan and Martin McGann are also non-executive directors of London & Stamford Property.

The Company was established on 1 October 2007 in order to exploit opportunities that it anticipated in the UK property cycles to invest principally in commercial property.

The Company raised £247.5 million (gross proceeds) through a placing in November 2007 when it was admitted to trading on AIM (LSP.L).

In October 2007, the Company entered into a five year revolving credit facility with Bank of Scotland for £150 million. The facility is extendable by the Company for a further two years and carries a margin of 80 basis points over LIBOR.

The Company made no acquisitions during 2008, considering that market conditions did not offer sufficient value.  It made six new investments in 2009 using £190 million of equity

In July 2009, the Company raised a further £225.8 million (gross proceeds) through a placing and open offer.

This is the Company's first acquisition of 2010.

Further information on London & Stamford Property is available from the Company's website www.londonandstamford.com

 

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