Sale of JSD
November 19 2003 - 2:07AM
UK Regulatory
RNS Number:2321S
Sainsbury(J) PLC
19 November 2003
SAINSBURY'S SELLS J SAINSBURY DEVELOPMENTS TO BLUE INVESTMENT FUND LP
J Sainsbury plc has exchanged contracts with Blue Investment Fund LP (Blue) for
the sale of J Sainsbury Developments Limited (JSD), its specialist property
trading and development arm, and associated assets held within Sainsbury's
Supermarkets Ltd. Blue is a joint venture between Schroders Gresham Property
Partners LP and Deutsche UK Property Venture Fund No. 2 Ltd. Catalyst Capital
LLP will asset manage the portfolio.
These assets have been sold for a cash consideration of #168 million, and
include 16 development properties focused on the retail sector, that have a book
value of #167 million. Five of the JSD development sites, with a value of over
#25 million, have been retained within the Sainsbury's group and will be
developed out or sold separately. Some of the employees of JSD will transfer to
the buyer. Completion of the transaction, which is subject to minimal
conditionality, will occur on 27th November 2003.
Created by Sainsbury's over ten years ago, JSD has grown into a successful
property trader-developer. The 16 projects are in various stages of development,
ranging from out-of-town retail to in-town mixed-use developments, throughout
the UK. These schemes are mostly unrelated to Sainsbury's store development
programme.
Commenting on the sale, Desmond Taljaard, property director for Sainsbury's
said: "Going forward we will concentrate our property development activities on
core supermarket developments. JSD no longer fits strategically with the
business as it has emphasised delivering schemes which primarily do not relate
to our supermarkets."
"Sainsbury's will continue to carry out development of stores and related
properties by using the skills of its in-house Asset Development team. This team
focuses on adding value to the business by maximising opportunities to develop
sites that enhance the Sainsbury's store by way of extension, redevelopment or
re-formatting."
For enquiries:
Investor Relations:
Lynda Ashdon +44 (0) 20 7695 7162
Media
Tina Christou +44 (0) 20 7695 7571
Notes
1. Sainsbury's has 507 stores in the UK, with more currently in development.
2.In the year to March 2003, JSD made an operating profit of #19 million
representing some
2.5% of group underlying operating profit of #752 million, (#15m in 2002
compared to #679m of group underlying operating profit).
3. For list of assets included within the sale: See overleaf ...
Assets within JSD Sale:
Property Sector Description
Lemon Quay, Truro Town Centre Retail Completed town centre development anchored by Marks &
Spencer.
Park Street, Newbury Mixed Use Major town centre retail and residential opportunity.
Hayes, Lombardy Retail Park Retail Warehousing Existing income producing retail park with short term
redevelopment potential.
Conigre Retail Park, Trowbridge Mixed Use Major town centre site for medium term open A1 retail
(Ushers Brewery Site) park and residential development.
Union Street, Aberdeen Town Centre Retail Two prime retail units under construction with upper
floor redevelopment potential.
Vastern Court Retail Park, Retail Warehousing Open A1 retail park in town centre location, short-term
Reading redevelopment potential.
Blackhorse Way, Horsham Mixed Use Part pre-let town centre retail development currently
under construction.
High Street, Shirley, Town Centre Retail Superstore and retail unit short term redevelopment
Southampton scheme.
Ty Glas Retail Park, Llanishen, Retail Warehousing Part open A1 retail park part let to Marks & Spencer
Cardiff currently commencing construction.
Bretton Shopping Centre, Retail Warehousing Second phase of development of district retail park.
Peterborough
Maypole, Birmingham Mixed Use South Birmingham suburban location adjacent to new
Superstore for medium-term retail development.
Alpha 1 & 2, Hams Hall, Industrial Two adjacent sites, one mid-construction, on established
Birmingham distribution park.
Solent 2, Whiteley, Fareham Office Large cleared site in established location for short/
medium term office development.
Edinburgh House, Kennington Office Newly refurbished self-contained office development with
car-parking.
Meymott Street, Blackfriars Office Development site consisting of a vacant building and car
park.
Coulsdon Industrial Well located 6 acre site next to Rail Station and next
to proposed bypass with own approach road.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISGGMMMRLDGFZG