PARK HOUSE DEFERRED CONSIDERATION & PROFIT SHARE
24 March 2011
For immediate Release
Land Securities Group PLC ("Land Securities")
LAND SECURITIES RESTRUCTURES DEFERRED CONSIDERATION AND PROFIT SHARE ON PARK HOUSE
Land Securities announces that it has agreed to convert the future deferred consideration and contingent profit share announced when Park House, W1 was sold to Barwa Real Estate Q.S.C. ("Barwa") in June 2010 into a fixed payment of £71.0m. Under the original agreement Land Securities was due to receive a payment of £25.0m on practical completion (estimated November 2012) and a further profit share up to a maximum of £50.0m (estimated November 2013). The fixed payment will now be made on the earlier of practical completion or 28 February 2013. Simultaneous to this announcement, Barwa has sold its interests in Park House to SFL3 Ltd, a subsidiary of Shard Funding Ltd, which is the parent company of the London Bridge Quarter development and is advised and represented by QNB Capital LLC.
Land Securities will remain as Development Manager of the project under a development management agreement.
Commenting on the transaction, Robert Noel, Managing Director of Land Securities' London Portfolio, said: "We are making great progress at Park House and remain committed to working with QNB Capital in producing a world class building. Today's transaction converts a contingent future payment into an earlier fixed payment eliminating risk as we recycle capital back into our development programme, including our latest schemes at 123 Victoria Street, SW1 and 110 Cannon Street, EC4, both of which are due to be completed before Park House."
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For further information, please contact:
Land Securities
Media Investors
Donal McCabe Ed Thacker / Melanie Shaw
Tel: 020 7024 5460 Tel: 020 7024 5255
This information is provided by RNS