Scotsman.com November 21, 2006
BAE Systems has sold its former industrial and laboratory complex in north Edinburgh for £94 million to a syndicate of private investors in a sale-and-leaseback deal.
The two buildings, Crewe Toll West and East, cover more than 439,000sq ft of office, laboratory and industrial space. The sale reflected a net initial yield of just over 5 per cent. The current rent for both properties is about £5m a year. BAE Systems Electronics will let the buildings until November 2024, with rent increases capped at 3 per cent above the retail price index.
LaSalle Investment Management, which sold the property on behalf of BAE Systems Pension Fund Trustees Ltd, said the funds would immediately be reinvested into industrial assets, as well as alternative sectors, such as car parks.
Earlier this year BAE Systems transferred property worth £242m to its pension fund including the Crewe Toll buildings, along with £110m cash, to help plug a deficit of more than £4 billion.
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Wednesday, November 22, 2006
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