London & Associated Properties Regulatory News (LAS)

15 Aug 2006 11:33

FOR IMMEDIATE RELEASE * August 2006 LAP/BoS JV SELLS ST HELEN'S SHOPPING CENTRE FOR ‚£75m London & Associated Properties Plc ("LAP"), the specialist retail propertyinvestor, today announces that, through Analytical Properties ("Analytical"),its 50% joint venture with the Bank of Scotland, contracts have been exchangedfor the sale of Analytical's leasehold interest in Church Square ShoppingCentre, St Helens, to ING Retail Property Fund Britannica ("ING") for ‚£75mcash. The sale is conditional only on freeholder's consent for the transaction.Analytical acquired Church Square in 2003 for ‚£50m and it was last valued at ‚£65m as at 31st December 2005. The centre produces an annual net rental incomeof ‚£4m.As part of the sale agreement Analytical is contributing ‚£1.25m of the proceedsto outstanding works required to the centre's two car parks. Analytical willalso provide rental guarantees of approximately ‚£500,000 a year for a maximumof 18 months. Of this ‚£195,000 per annum is pre-let to River Island, and ‚£150,000 per annum is on a unit currently under offer.John Heller, LAP's Chief Executive, said: "Church Square has performedextremely well. In three years we will have realised a profit of over ‚£20m fromthe centre, net of all costs, rental guarantees and fees. The initial cashinvestment by the two joint venture partners was ‚£7.8m."LAP's share of the proceeds from the sale will be added to LAP's existingresources to further develop and expand its retail portfolio.Donaldsons and Gooch Cunliffe Whale advised Analytical while CBRE acted forING. Ends. Contact:John Heller, Chief Executive, LAP. Tel: 020 7415 5000Robert Corry, Finance Director, LAPBaron Phillips, Baron Phillips Associates. Tel: 020 7920 316107050 124119ENDLONDON AND ASSOCIATED PROPERTIES PLC