Land Securities announces that it has completed the purchase of a 42% interest in the X-Leisure Unit Trust and 100% interests in X-Leisure Limited (the management company of the fund) and X-Leisure (General Partner) Limited for £111.9 million (approx. 133.9 million) (subject to final adjustments).
Completion follows satisfaction of the conditions relating to approval from Capital & Regional shareholders, bank consents and regulatory approvals outlined in Land Securities' announcement of December, 21.
This transaction increases Land Securities' holding in the X-Leisure Fund to 54%. As at December 31, 2012, the key financials for the fund based on the unaudited management accounts (prepared under UK GAAP) were: investment properties valued at £595million (approx. 717 million), net assets of £295 million (approx. 355.6 million), gross rental income after ground rents for the year of £40.5 million (approx. 48.8 million), external debt of £300 million (approx. 361.6 million) with an average cost of debt of 6.1%.
The 100% acquisition of X-Leisure Limited ('XLL') will see the management company become a wholly-owned subsidiary of Land Securities and the existing employees will remain with the business. However, PY Gerbeau (CEO of XLL) has decided that, with the transfer of the management company, he will leave the business to take on new challenges.
Richard Akers, Executive Director at Land Securities said:
"Leisure is increasingly being treated as an essential element of the UK consumers' habits and as we enhance our shopping centers by broadening their leisure offer, today's deal gives us unparalleled reach with the major operators." "We have been clear that we would look to increase the proportion of leisure in our business and today's announcement is further evidence of our plan to align our Retail Portfolio with the modern demands of the consumer."
PY Gerbeau, former CEO, X-Leisure Limited, said:
"This has been a very amicable transaction and I am extremely happy to have such a significant player taking X-Leisure forward and bringing additional credibility and gravitas to the industry which I have promoted so hard for the past 20 years." "I depart knowing that the transaction with Land Securities provides the best possible conclusion to my time with the company. The majority stakeholders have a successful exit, the remaining investors have stability and the commitment of a best in class management team to continue the growth of the business."
Source: Land Securities Group PLC