Friday, March 23, 2007

Kwik-Fit Agrees to £103.7 Million Sale Leaseback of 148 UK Service Centers

Easier Property - March 23, 2007

GE Real Estate UK and Paradigm Real Estate Managers (“PREM”) have created a leveraged joint venture to acquire 148 Kwik-Fit specialist fitting centres for £103.7 million reflecting a net initial yield of 5.3%.

The 148 property portfolio, which are located throughout the UK, have been acquired through a sale and leaseback transaction and are let to Kwik-Fit UK on 25 year leases with fixed uplifts in years 5 and 10. The properties are generally well-located in town centres and many offer redevelopment opportunities.

Simultaneous with the transaction, GE Real Estate and PREM have entered into a development agreement with Kwik-Fit, which will enable the joint venture to assess and pursue redevelopment schemes. Kwik-Fit will also have the opportunity to benefit from any redevelopment profit after the payment of a priority return to the Joint Venture.

Montagu Evans acted on behalf of the joint venture. Savills acted on behalf of Kwik-Fit. RBS provided debt finance for the transaction Sphere: Related Content

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