RNS Number:1534L
Retail Stores PLC
18 April 2005
FOR IMMEDIATE RELEASE
18th 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 by
Marylebone Warwick Balfour Group Plc ("MWB"), announces the sale of Lasenby
House, Kingly Street and the Liberty Island site, Regent Street to The Great
Victoria Partnership (No. 2), a joint venture between Great Portland Estates plc
and Liverpool Victoria Friendly Society, for a total consideration of #66.5
million in cash. The two properties currently generate a net annual rental
income of approximately #4.4 million.
The sale generates a pre-tax surplus on the 31st December 2004 book value of
approximately #3.5 million after sale costs. Retail Stores will use the proceeds
to repay its entire debt, which at 18th April 2005 stood at #61.9 million, thus
eliminating annualised interest charges of approximately #3.9 million.
Lasenby House is a freehold property which comprises approximately 25,500 sq ft
of office space let to Liberty Plc ("Liberty"), with a sublease on 17,600 sq ft
to MWB Business Exchange UK Limited ("Business Exchange").
The Liberty Island Site is held leasehold from the Crown Estate Commissioners
for a term expiring in July 2051. It comprises approximately 63,000 sq ft of
retail and office accommodation. The majority of the 36,000 sq ft of office
accommodation on 2nd to 6th floors is let on a single lease to MWB Business
Exchange 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 floors
occupied by Liberty, Gap and Barclays Bank.
Richard Balfour-Lynn, Chairman of Retail Stores, said: "This is a positive deal
for the Company as it enables us to repay all our debt and focus resources on
developing Liberty designed luxury goods aimed at the international market. As a
result of this sale, the financial structure of Retail Stores has been greatly
enhanced, thus underpinning the core operations of the business.
"Since Autumn 2004, Liberty has been proving increasingly popular and our sales
have improved dramatically at a time when many retail groups have reported flat
or declining sales."
Contacts:
Richard Balfour-Lynn, Chairman, Retail Stores. Tel: 020 7706 2121
Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161
Ends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISXDLFFEZBBBBZ
|