Disposal

18 Apr 2005 07:00

Retail Stores PLC18 April 2005 FOR IMMEDIATE RELEASE18th April 2005 RETAIL STORES Plc SELLS TWO PROPERTIES FOR £66.5M AND BECOMES DEBT FREE Liberty owner Retail Stores Plc ("Retail Stores"), which is 68% owned byMarylebone Warwick Balfour Group Plc ("MWB"), announces the sale of LasenbyHouse, Kingly Street and the Liberty Island site, Regent Street to The GreatVictoria Partnership (No. 2), a joint venture between Great Portland Estates plcand Liverpool Victoria Friendly Society, for a total consideration of £66.5million in cash. The two properties currently generate a net annual rentalincome of approximately £4.4 million. The sale generates a pre-tax surplus on the 31st December 2004 book value ofapproximately £3.5 million after sale costs. Retail Stores will use the proceedsto repay its entire debt, which at 18th April 2005 stood at £61.9 million, thuseliminating annualised interest charges of approximately £3.9 million. Lasenby House is a freehold property which comprises approximately 25,500 sq ftof office space let to Liberty Plc ("Liberty"), with a sublease on 17,600 sq ftto MWB Business Exchange UK Limited ("Business Exchange"). The Liberty Island Site is held leasehold from the Crown Estate Commissionersfor a term expiring in July 2051. It comprises approximately 63,000 sq ft ofretail and office accommodation. The majority of the 36,000 sq ft of officeaccommodation on 2nd to 6th floors is let on a single lease to MWB BusinessExchange with the remainder let to Liberty. Both leases expire in February 2016.The remaining 27,000 sq ft is retailing on basement, ground and first floorsoccupied by Liberty, Gap and Barclays Bank. Richard Balfour-Lynn, Chairman of Retail Stores, said: "This is a positive dealfor the Company as it enables us to repay all our debt and focus resources ondeveloping Liberty designed luxury goods aimed at the international market. As aresult of this sale, the financial structure of Retail Stores has been greatlyenhanced, thus underpinning the core operations of the business. "Since Autumn 2004, Liberty has been proving increasingly popular and our saleshave improved dramatically at a time when many retail groups have reported flator declining sales." Contacts:Richard Balfour-Lynn, Chairman, Retail Stores. Tel: 020 7706 2121Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161 Ends. This information is provided by RNS The company news service from the London Stock Exchange