| Tue 14 May 2002, 0:00 | | Liberty International PLC - Norwich Retail Develop |
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LIBERTY INTERNATIONAL PLC
(Registration number UK3685527)
ISIN Code : GB0006834344
JSE Code : LBT
Issuer Code : LILI I
14th May 2002
Chapelfield, Norwich
GBP275 million commitment by Capital Shopping Centres to Major 510,000
sq.ft. Regional Shopping Centre Development
The announcement shown below has been issued today jointly by Capital
Shopping Centres ("CSC"), the wholly owned subsidiary of Liberty
International, and Lend Lease Europe Limited ("Lend Lease").
The arrangements involve CSC contributing GBP40 million in cash on the
commencement of the development and the balance, subject to the centre being
70% let, largely on completion with final settlement up to two years after
completion. The current estimates show CSC contributing approximately
GBP275 million based on estimated aggregate rental and other income of
approximately GBP18 million. The amount can be adjusted up or down largely
pro-rata to the final level of income but will not exceed a maximum total
payment of approximately GBP295 million. Construction of the scheme is
scheduled to commence in 2002 with completion scheduled for 2005.
In addition, CSC has agreed to acquire on completion the residential element
of the project, comprising 115 residential units, at an estimated cost of
GBP12 million before fit-out costs.
The arrangements are on completion expected, at current interest rates, to
have a positive impact on Liberty International group`s overall earnings.
Donald Gordon, Chairman of Liberty International, commented:
"We are pleased to be involved in this large scale and attractive mixed use
city centre regeneration project in Norwich and in a joint venture with Lend
Lease.
Chapelfield, Norwich, will on completion add to CSC`s portfolio of 10
regional shopping centres, including 6 of the UK`s top 15 centres, and
further extend the group`s franchise in key UK retailing locations. CSC`s
existing centres comprise some 8 million square feet of prime retail space
and attract over 180 million customer visits each year. CSC is currently
involved at the planning stage in major city centre projects in Oxford,
Cardiff and Liverpool in addition to Chapelfield, Norwich."
Enquiries:
Liberty International/Capital Shopping
Centres
David Fischel, Chief Executive, Liberty 020 7960 1207
International
John Abel, Managing Director, Capital 020 7887 7057
Shopping Centres
Public Relations:
UK - Michael Sandler, Hudson Sandler 020 7796 4133
SA - Nicholas Williams, College Hill 020 7457 2020
- Robyn Hunt, College Hill SA +2711 447 3030
ANNOUNCEMENT:
LEND LEASE REACHES AGREEMENT WITH CAPITAL SHOPPING CENTRES OVER NORWICH
RETAIL DEVELOPMENT
Lend Lease and Capital Shopping Centres to Work Jointly Through
Development Phase
Lend Lease Europe Limited (`Lend Lease`) has agreed to the sale of its 100%
participation in Chapelfield, the retail led development in Norwich, UK, to
Capital Shopping Centres. Construction of the scheme is scheduled to
commence in July 2002 with practical completion scheduled for 2005.
Under the terms of the agreement, Capital Shopping Centres will work with
Lend Lease through the development phase, providing asset and centre
management.
Lend Lease will design, construct and develop Chapelfield as well as be
responsible for letting. A substantial proportion of the payment to be made
by Capital Shopping Centres will be determined when the centre reaches
practical completion and is 70 per cent let.
The Chapelfield retail development, with a forecast asset value of
approximately GBP275 million, is believed to be the largest ever single
investment in Norwich and sees the regeneration of a former factory building
and surrounding land. The 510,000 sq. ft. mixed-use project will be
anchored by a leading House of Fraser department store and include a further
ten large stores and over 80 shops, restaurants and cafes as well as 115
residential units. It has been designed to fully integrate with the existing
town centre and has had the full consultation and support of the City
Council.
John Abel, Managing Director, Capital Shopping Centres says, "There is a
scarcity in the United Kingdom of high quality retail assets which meet our
requirements. Chapelfield represents an extremely well planned and designed
development, which is located in a strong regional catchment area. This is
an excellent opportunity for Capital Shopping Centres to add to our current
portfolio of prime retail centres in the UK."
Chapelfield in Norwich will add to Capital Shopping Centres` UK portfolio of
ten leading centres, which currently includes Lakeside (Thurrock),
MetroCentre, (Gateshead) and Braehead (Glasgow).
David Hutton, Director of Lend Lease Europe said, "Chapelfield will add to
Lend Lease`s track record of creating high quality dominant retail
destinations in the UK. It is our fifth major retail centre development in
Europe, and will further demonstrate our ability to deliver innovative
retail centres and to regenerate city centres. Retail in the UK remains a
core focus of Lend Lease, and we will continue to work alongside leading
property companies and investors in creating, delivering and managing large
retail assets. We are delighted to be working with Capital Shopping Centres
and look forward to the success of Chapelfield and the opportunity to
explore other opportunities together."
Contact:
Cohne & Wolfe: Stephen Davie 020 7331 5436
Emma Noble 020 7331 5366
Capital Shopping Centres: John Abel 020 7887 7057
Lend Lease: David Hutton 020 7395 7327
Date: 14/05/2002 08:32:05 AM Produced by the SENS Department
