TIDMBLND
RNS Number : 2177Y
British Land Co PLC
01 March 2017
British Land and Oxford Properties exchange contracts for the
sale of The Leadenhall Building
to C C Land
1 March 2017
British Land and Oxford Properties (the global real estate arm
of OMERS, the pension plan for Ontario's municipal employees) have
exchanged contracts for the sale of The Leadenhall Building to C C
Land for a headline price of GBP1.15 billion. Completion is
conditional on approval by the shareholders of C C Land.
British Land and Oxford Properties developed and own The
Leadenhall Building as an investment in a 50/50 joint venture
formed in 2010.
Construction of The Leadenhall Building started in early 2011
and completed in summer 2014. The building is fully let, with an
average remaining lease term of over 10 years to break, and has
achieved record rents for the City of more than GBP100 per sq ft.
It is occupied by high calibre businesses including insurers Aon
and MS Amlin, and the building's architects Rogers Stirk Harbour +
Partners.
At 736 feet, The Leadenhall Building is the tallest building in
the City of London. It provides 610,000 sq ft of world class office
accommodation over 46 floors, in a prime location. Its distinctive
sloping shape was designed to protect views of St Paul's Cathedral
and offers a range of floorplates with spectacular views over
London. The building was voted City of London Building of the Year
2015 by the Worshipful Company of Chartered Architects.
Tim Roberts, Head of Offices and Residential, British Land,
said: "British Land and Oxford Properties took a bold step at the
early stages of the UK's economic recovery to develop The
Leadenhall Building to generate a high quality, long term income
stream. It's a decision which has really paid off. Through a
strong, collaborative partnership, we have delivered an iconic,
award-winning building let to high calibre occupiers at record City
rents. This sale shows continued investor appetite for best in
class, well located property in London."
Paul Brundage, Executive Vice President and Senior Managing
Director - Europe, Oxford Properties, said: "Oxford Properties has
enjoyed a highly successful partnership with British Land through
our joint investment in the development, delivery and management of
this iconic building. We have delivered on our strategy of ensuring
that The Leadenhall Building meets its potential to become one of
the most commercially successful investments in London. The
Leadenhall Building has been a cornerstone of our London business
and has propelled Oxford Properties to a leading position in
European real estate development and investment. We are fully
committed to the UK and Europe for the long term and are looking
forward to pursuing further investment opportunities going forward
either on our own or with like-minded partners such as British
Land."
The sale agreement provides for British Land and Oxford
Properties to sell their entire shareholdings in the company which
holds the investment in The Leadenhall Building to C C Land. The
consideration for the sale will be calculated by reference to the
net asset value of that company based on the agreed property value
of GBP1.15 billion, subject to adjustment for top-ups in respect of
rent free periods and rent guarantees currently estimated to be
approximately GBP12.7 million. The consideration will be received
in cash and apportioned in equal shares to British Land and Oxford
Properties.
The sale is subject to approval by the shareholders of C C Land
(by simple majority) in a Special General Meeting in accordance
with the Hong Kong Listing Rules. The Chairman of C C Land, Mr.
Cheung Chung Kiu, is the sole shareholder of two companies (Fame
Seeker Holdings Limited and Thrivetrade Limited) which in aggregate
hold approximately 50.4% of the issued share capital of C C Land as
at the date of this announcement, and has given an irrevocable
undertaking to procure that these companies vote in favour of the
resolution approving the transaction. The C C Land circular to
shareholders, including a notice convening the Special General
Meeting, will be despatched as soon as possible taking into account
the minimum time anticipated for preparing the necessary reports
and financial information for inclusion in the circular. Completion
is expected to take place no more than five business days after
shareholder approval is obtained, provided shareholder approval is
obtained no later than 28 June 2017, unless extended by
agreement.
The buyer has paid an amount of GBP287.5 million to the sellers'
solicitors. If approval of the C C Land shareholders is not
obtained on or before 28 June 2017, or such other date agreed by
the parties, then a total of GBP40 million of this amount is
released to the sellers, with the remainder to be returned to the
buyer. If approval of the C C Land shareholders is obtained then
the whole of the GBP287.5 million is released to the sellers at the
earlier of completion (along with payment of the balance of the
consideration by the buyer) and 28 June 2017, or such other date
agreed by the parties, subject to compliance by the sellers with
their completion obligations.
Proceeds received by British Land for its interest will
initially be used to pay down revolving credit facilities, pending
redeployment. The Leadenhall Building was last valued on behalf of
the current owners on 30 September 2016 at GBP915 million (100%
interest). The net rental income recognised for the year to 31
March 2016 was GBP27 million (100% interest) and annualised
contracted rent for the building is currently GBP40 million (100%
interest). The disposal is slightly dilutive to British Land's
earnings per share and slightly accretive to its net asset value
per share.
British Land and Oxford Properties were advised by Cushman &
Wakefield, Eastdil Secured, Mayer Brown and Herbert Smith
Freehills.
S
Enquiries
British Land
Investor Relations:
Jonathan Rae, British Land 020 7467 2938
Media:
Pip Wood, British Land 020 7467 2838
Guy Lamming, Finsbury Group 020 7251 3801
Gordon Simpson, Finsbury Group 020 7251 3801
Oxford Properties
Media:
Sally Saadeh, Oxford Properties 020 7822 2844
James Devas, Maitland 020 7379 5151
About British Land
We are one of Europe's largest publicly listed real estate
companies. We own, manage, develop and finance a portfolio of high
quality UK commercial property, focused on Retail and London
Offices and Residential. We own or manage total assets of GBP19.0
billion (British Land share is GBP13.9 billion) as valued at 30
September 2016. Our properties are home to over 1,200 different
organisations ranging from international brands to local
start-ups.
Our strategy is to create Places People Prefer. It is based on
long term trends and creates a portfolio suited to current and
future needs which are aligned to modern lifestyles. We employ our
placemaking skills, and increasingly our mixed-use expertise to
expand the appeal to a broader range of occupiers and drive long
term performance.
Retail accounts for 49% of our portfolio. We create outstanding
places for modern consumer lifestyles, places to shop, eat and be
entertained. Comprising over 20 million sq ft of Retail and Leisure
space across regional and local multi-let destinations,
superstores, department stores and leisure assets, the Retail
portfolio is modern, flexible and adaptable to a wide range of
formats.
Office and Residential accounts for 49% of our portfolio. It
comprises 7.6 million sq ft of well-connected office-led campuses
and 'campus-lite' clusters of high quality buildings. Office
campuses include Regent's Place and Paddington Central in the West
End and Broadgate (50% share) in the City. Other assets include
York House, 10 Portman Square and Marble Arch House and our
residential assets are at Clarges Mayfair, The Hempel Collection
and Aldgate Place.
Two per cent of our portfolio is at Canada Water - a 46 acre
redevelopment opportunity in our medium term pipeline to create a
new mixed-use urban centre for London.
Sustainability is embedded throughout our business. Our places
become part of their local communities and promote health, improve
productivity and increase enjoyment. We protect asset value through
energy generation and efficiency, materials innovation and flood
risk reduction and we develop skills and opportunities to help
local people and businesses grow.
In April 2016 British Land received the Queen's Award for
Enterprise: Sustainable Development, the UK's highest accolade for
business success for economic, social and environmental benefits
achievements over the last five years.
Further details can be found on the British Land website at
www.britishland.com.
About Oxford Properties Group
Oxford Properties Group is one of the world's premier real
estate investment, development and management companies.
Established in 1960, Oxford manages over $40 billion of real estate
assets on behalf of its co-owners and investment partners, with a
global portfolio spanning over 60 million square feet. We have
offices across Canada and in London, Luxembourg, Boston, Washington
DC and New York, with regional investment, development and
management professionals who have deep real estate expertise and
local market insight. Oxford now has approximately C$7bn of assets
under management in Europe, with a focus on core office and high
street retail assets in Central London and Paris. Oxford is the
global real estate arm of OMERS, the pension plan for Ontario's
municipal employees.
For more information about Oxford visit:
www.oxfordproperties.com.
MSCUGUAUWUPMGGG
(END) Dow Jones Newswires
March 01, 2017 06:08 ET (11:08 GMT)
British Land (LSE:BLND)
Historical Stock Chart
From Mar 2025 to Apr 2025
British Land (LSE:BLND)
Historical Stock Chart
From Apr 2024 to Apr 2025
