| Tue 13 Mar 2007, 9:00 | | LBT- Liberty International Plc - Liberty Internati |
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LBT
LILII
LBT- Liberty International Plc - Liberty International Announces A Strategic
Partnership With Gic Real Estate For Metrocentre, Gateshead
LIBERTY INTERNATIONAL PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: LBT
Issuer Code: LILI
13 March 2007
LIBERTY INTERNATIONAL ANNOUNCES A STRATEGIC PARTNERSHIP WITH GIC REAL ESTATE FOR
METROCENTRE, GATESHEAD
Attached is a joint announcement issued today by Liberty International and GIC
Real Estate.
The net rental income in 2006 attributable to CSC`s entire MetroCentre interest
amounted to GBP46.7 million and the market value of MetroCentre as at 31
December 2006 in Liberty International`s accounts was GBP1,025 million.
GIC RE`s contribution to the partnership will be paid in cash on completion.
Susan Folger
Company Secretary
This announcement includes statements that are forward-looking in nature.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Liberty International PLC to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Any information contained in this announcement on the price at
which shares or other securities in Liberty International PLC have been bought
or sold in the past, or on the yield on such shares or other securities, should
not be relied upon as a guide to future performance.
JOINT ANNOUNCEMENT BY LIBERTY INTERNATIONAL AND GIC REAL ESTATE
13 March 2007
LIBERTY INTERNATIONAL ANNOUNCES A STRATEGIC PARTNERSHIP WITH GIC REAL ESTATE FOR
METROCENTRE, GATESHEAD
Liberty International today announced that its wholly owned subsidiary Capital
Shopping Centres (`CSC`) has entered into an agreement with GIC Real Estate
(`GIC RE`) for GIC RE to acquire a 40 per cent share of CSC`s interest in the
MetroCentre.
GIC RE is a leading global real estate investor and ranks amongst the world`s
top real estate investment firms.
The MetroCentre, which originally opened in 1986, is the UK`s No. 1 regional
shopping centre and is Europe`s largest covered retail and leisure centre.
CSC acquired MetroCentre in 1995 and has substantially extended and renovated
the centre to provide an unrivalled shopping experience with over 330 shops and
attractions arranged over 1.8 million sq.ft., drawing an estimated 24 million
visitors every year.
CSC owns a 90 per cent economic interest in the MetroCentre under a series of
200 year leases from the Church Commissioners. GIC Real Estate will acquire 40
per cent of CSC`s interest for a gross consideration of GBP426 million which
values CSC`s current interest at GBP1,065 million.
Under the arrangements with GIC RE, CSC will continue to manage the centre for
the partnership. The partnership will assume the existing external borrowings
relating to the MetroCentre, comprising GBP587 million of Commercial Mortgage
Backed Securities (`CMBS`) dated 2015.
Commenting on the transaction, Sir Robert Finch, Chairman of Liberty
International PLC, said, "We are delighted to welcome GIC Real Estate as a
strategic long term partner in one of our flagship assets, the MetroCentre in
Gateshead. We are committed for the long term to the MetroCentre and to
providing an attractive environment for our retailers and shoppers in this
highly successful centre. We firmly believe that GIC Real Estate holds similar
investment values to Liberty International and we look forward to working with
it closely in the future. The proceeds of this transaction will enable Liberty
International to continue to expand its overall business which includes a GBP1
billion development programme."
Dr Seek Ngee Huat, President of GIC RE said, "This agreement with Liberty
International allows us to work alongside one of UK`s most established property
companies and invest in MetroCentre, a leading shopping centre in the Northeast
of England. GIC RE invests in a wide range of property sectors around the world,
and this investment is an excellent addition to our global portfolio of retail
properties such as our interests in Bluewater Shopping Centre in Kent, UK, Roma
Est in Rome, Italy, Sunway Pyramid Mall in Malaysia, and Queen Victoria Building
in Australia."
Completion of the transaction is subject to landlord`s consent and certain other
conditions which are expected to be satisfied shortly.
Liberty International has been advised by Morgan Stanley. GIC RE has been
advised by Cushman and Wakefield.
Enquiries:
Liberty International PLC:
David Fischel Chief Executive +44 (0)20 7960 1207
Kay Chaldecott Director of Liberty +44 (0)20 7887 7057
International and
Managing Director of CSC
Public relations:
UK: Michael Sandler, Hudson +44 (0)20 7796 4133
Sandler
South Africa: Matthew Gregorowski,
College Hill Associates +44 (0)20 7457 2020
Nicholas Williams,
College Hill Associates +27 (0)11 447 3030
GIC Real Estate Pte Ltd:
Mah Lay Choon Vice President
Corporate Communications +65 6889 6841
Administration & Corporate mahlaychoon@gic.com.sg
Affairs
Notes for Editors
Liberty International PLC is the UK`s third largest listed property company and
a constituent of the FTSE-100 Index of the UK`s leading listed companies.
Liberty International converted into a UK Real Estate Investment Trust (REIT) on
1 January 2007.
Liberty International owns Capital Shopping Centres ("CSC"), the premier UK
regional shopping centre business, and Capital & Counties, a retail and
commercial property investment and development company concentrating on Central
London, non-shopping centre retail in the UK and California, USA.
At 31 December 2006 Liberty International held GBP8.2 billion of investment
properties of which UK regional shopping centres comprised 80 per cent and
retail property in aggregate 92 per cent. Shareholders` funds (diluted)
amounted to GBP5.0 billion.
CSC has interests in 14 UK regional shopping centres amounting to around 12.5
million sq.ft. of completed space in aggregate including 8 of the UK`s top 21
regional shopping centres. CSC`s largest centres are Lakeside, Thurrock;
MetroCentre, Gateshead; Braehead, Renfrew, Glasgow; The Harlequin, Watford;
and Manchester, Arndale. CSC has three major development projects underway or
with planning permission in Cardiff, Oxford and Newcastle.
Capital & Counties held assets of GBP1.65 billion at 31 December 2006 amounting
to 6.7 million sq.ft. in aggregate. This included around GBP500 million
invested in the Covent Garden area including the historic Covent Garden Market,
and a further GBP350 million in Central London. In addition to some GBP450
million invested in other retail and commercial properties in the UK, Capital &
Counties has interests in the USA amounting to around GBP350 million (2.4
million sq.ft.), predominantly comprising retail assets in California, notably
the 856,000 sq.ft. Serramonte Shopping Centre, Daly City, San Francisco.
MetroCentre, Gateshead
The UK No. 1 shopping centre*
Europe`s largest covered retail and leisure centre
1.8 million sq ft (168,900 sq m) retail and leisure space
Three department stores - Debenhams, House of Fraser and Marks & Spencer
339 stores for national and local retailers
Significant leisure offer includes an assortment of cafes and restaurants, a
bowling alley and multi-screen cinema
Modern transport interchange, with frequent train services and bus routes
serving a wide area. 9,000 car spaces
New Red Mall (371,000 sq.ft.) opened in 2004. Following this, an on-going
programme of refurbishment has been undertaken throughout the centre
24 million shoppers a year
2.6 million live within 70 minutes drive time of the centre**
Average dwell time: 2 hours 30 minutes**
Shopper profile: ABC1 57% C2DE 43%**
*Going Shopping 2006 - Trevor Wood Associates
** Experian research 2006
About GIC Real Estate Pte Ltd (GIC Real Estate)
GIC Real Estate Pte Ltd (GIC Real Estate) is the real estate investment arm of
the Government of Singapore Investment Corporation. Its mandate is to invest
globally in real estate and real estate-related assets outside Singapore. GIC
Real Estate manages a multi-billion dollar portfolio of direct and indirect
property investments with over 150 investments in more than 30 countries. It is
one of the largest institutional investors in Asia and currently ranks amongst
the world`s top 10 global real estate investment firms.
Date: 13/03/2007 09:00:01 Produced by the JSE SENS Department.
