Saturday, March 10, 2007

Royal Mail Completes £70 Million Sale Leaseback of 285 UK Properties

Land Securities Group Web Site - March 8, 2007

Land Securities Group PLC announces that its property partnership business Land Securities Trillium (‘LST’) has completed the acquisition of a portfolio of 285 properties from the Royal Mail, for around £70 million.

Of the portfolio, a total of 108 leasehold properties are vacant and surplus to Royal Mail’s operations, the responsibility for which will now pass to Land Securities Trillium. These vacant properties will be refurbished by LST with a view to securing new occupiers. The remaining 177 freehold properties, where only part of the space is being used by Royal Mail for operational purposes, will be leased back by LST to Royal Mail for 15 years. Royal Mail will occupy just the space it needs within these buildings. It is expected that the contract will become earnings enhancing for LST from the second year of ownership onwards.

This transaction reportedly represents just 3% of the total operating space for Royal Mail. Sphere: Related Content

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