Re Queen Anne's Gate
Land Securities Group Plc
18 May 2004
18 May 2004
LAND SECURITIES GROUP PLC ('LAND SECURITIES' / 'GROUP')
LAND SECURITIES ENTERS INTO AGREEMENT WITH GOVERNMENT FOR REFURBISHMENT OF
50 QUEEN ANNE'S GATE SW1
Land Securities has entered into an agreement with Government for the
refurbishment of 50 Queen Anne's Gate, the current Home Office building
constructed in 1977. The new occupant of the 305,000 sq ft building will be the
Department for Constitutional Affairs (DCA), formerly the Lord Chancellor's
Department.
Under the new agreement, the building will be refurbished in a contract run by
Land Securities to a specification prepared by its professional team and
approved by the DCA. Land Securities will undertake the refurbishment on a full
risk sharing arrangement. A new extended lease to Government has already been
agreed to allow the project to proceed.
Francis Salway, Chief Operating Officer at Land Securities, commented, 'Together
with the Department for Constitutional Affairs, we will revitalise and bring
into full modern condition an older building that is both part of Land
Securities holdings and, through the current lease, part of the Government
estate. Through the mechanism agreed, the Government will enjoy good quality
accommodation and we obtain a satisfactory return for our shareholders.
'We will undertake the refurbishment of 50 Queen Anne's Gate, on a full
risk-sharing basis and a building maintenance and services programme for the
term of the lease contract. We are combining our financial strength,
development and FM expertise in a way that is unique within the property sector
to generate earnings for the Group over the longer term. All areas of the
business are working together on the project demonstrating our breadth of skills
and ability to provide accommodation and a full range of property services.'
Adam Skinner, Programme Director, HQ Estate at the Department for Constitutional
Affairs, said, 'We are delighted to enter this agreement with Land Securities,
which is one of Government's major lessors in London. This enables us to
revitalise a major Government asset and convert it into modern accommodation of
good quality for the longer term. It will provide flexibility for the
Department in dealing with the demands that are faced by a large Government
organization. This forms an important part of our long-term accommodation
strategy for the Department which we have developed over a number of years
within the existing Government Estate. The agreement also incorporates a
risk-sharing mechanism in accordance with Government policy. This scheme will
be another demonstration in practice of the Government's commitment to
productive partnership with the private sector on market terms.'
-Ends-
For further information please contact:
Land Securities
Emma Denne/Melissa Winsor
Tel: 020 7413 9000
Financial Dynamics
Stephanie Highett/Dido Laurimore
Tel: 020 7831 3113
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