Sunday, January 11, 2004

MG Rover Completes Sale Leaseback of 230 Acre Car Plant

Property Week - January 6, 2004

Regeneration specialist St Modwen has bought 4.25m sq ft (395,000 sq m) of buildings at the MG Rover site in Longbridge for GBP 42.5m m.

St Modwen, which is already regenerating 40 acres (16 ha) of the car plant in partnership with Advantage West Midlands (AWM), paid Pounds 42.5m for the buildings and the surrounding 228 acres (92 ha) of land.

MG Rover has taken the land back on a 35-year lease at Pounds 3.6m a year with annual fixed uplifts and the option to renew on expiry. It will invest the proceeds of the sale in product development. Its operational activities on the land will not be restricted, but provision is made for the release of surplus land at MG Rover's option.

St Modwen executive director Richard Froggatt said it was very similar to a sale-and-leaseback transaction to those they had recently completed with Goodyear, Corus, Alstom, Invensys and others.

St Modwen and AWM submitted a planning application to Birmingham City Council in November to build a £100m business park on 40 acres (16 ha) of surplus land at the site, totalling more than 700,000 sq ft (65,032 sq m) of space. Sphere: Related Content

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