Land Securities Trillium and Norwich Union agree sale of seven properties to Active Asset Investment Management Limited (aAIM) for £100.5 million.
Land Securities announces that its property outsourcing business, Land Securities Trillium has, together with client Norwich Union, agreed the sale of a portfolio of seven properties to aAIM for £100.5 million. At the outset of the 25-year property outsourcing agreement, which commenced in June 2004, it was agreed that the onward sale of these properties would achieve best value for both Land Securities Trillium and Norwich Union.
Land Securities Trillium will continue to manage and maintain these buildings on behalf of Norwich Union. Norwich Union will occupy the properties for a lease term, in most cases, of 25 years. The purchaser will benefit from an index linked (RPI) rental income with a covenant strength of AA-.
The properties are located in Norwich, Perth and York. Norwich Union Insurance’s Norwich headquarters, where Land Securities Trillium is undertaking a £92 million refurbishment project, is not included in the transaction.
Ian Ellis, Chief Executive of Land Securities Trillium, said, ‘The sale of these buildings demonstrates our commitment to delivering innovative solutions to our clients’.
Stuart Smith, Director of Occupied Property Strategy of Norwich Union, said, ‘We are delighted to have successfully concluded this transaction which was a key part of our property outsourcing deal and one which has delivered best value’.
Mark Tagliaferri, aAIM Chairman, commented, ‘We are delighted to have worked with Norwich Union and Land Securities Trillium on this innovative and complex deal. The portfolio consists of prime property let to an undoubted covenant on long-term leases which meets all of our investment criteria’.
Land Securities Trillium and Norwich Union were advised by CB Richard Ellis and aAIM was advised by DTZ.
Source: Land Securities