Land Securities Group PLC and Slough Estates plc announced yesterday that they have exchanged contracts for the property swap announced on 24 August 2004. The transaction will involve an exchange of the majority of their respective retail and industrial property portfolios with a combined value of approximately £700 million.
Following completion of the transaction Land Securities will own The Howard Centre in Welwyn Garden City, the Lewisham Centre in South London, the Bishop Centre in Taplow and a 50% interest in Buchanan Galleries in Glasgow. The portfolio totals some 91,300 sq. m. of retail space and has a rent roll of £20.4 million.
In return Slough Estates will increase its industrial portfolio by some 300,000 sq. m of space. Slough will be acquiring a total of 23 properties, with a rent roll of approximately £22 million including a rental guarantee. The difference in the relative values of the portfolios will be met by a cash consideration of £18.5 million, payable to Slough Estates.
Land Securities will retain industrial properties with a value of £56 million (31 March 2004), the majority of which have medium term potential for development for alternative uses and Slough Estates will retain its share in shopping centres in York and Surrey Quays, which will be sold in due course.
Francis Salway, Land Securities Chief Executive said “A property swap is an effective way to acquire additional retail assets off-market