CONVERTEAM UK LEASE AGREEMENT ON RUGBY REGENERATION SITE

Converteam, a world leader in power conversion engineering, has agreed terms with St Modwen Properties, the UK¹s leading regeneration specialist, for a new 15-year lease on 400,000 sq ft of remodelled existing industrial space being created by St Modwen for Converteam at a cost of more than £2 million as part of its massive regeneration plans to transform more than 100 acres of the former GEC complex close to Rugby town centre.

The 15-year agreement secures continuous manufacturing capability for Converteam¹s rotating machines facility in Rugby, which has operated from the site for more than 100 years under various corporate identities, principally GEC but latterly Alstom.

St Modwen has obtained planning consent from Rugby Borough Council for what will be the largest ever brownfield development in the borough. The development is to include a new campus for Warwickshire College which is relocating from Lower Hillmorton Road, some 540 homes and five acres for new employment space as well as the reuse of 16 acres for Converteam, and major new road infrastructure whcih will link Leicester Road and Mill Road and take pressure off Broughton Road.

The consent follows three years of complicated planning work in close conjunction with Rugby Borough Council and other statutory bodies leading to the creation of an imaginative masterplan to regenerate the whole area.

Ian Sharpe, business improvement director of Coverteam, said: "We are very pleased to be part of the regeneration plans for Rugby. By signing this 15-year lease we have secured Converteam¹s rotating machines manufacturing capability in Rugby enabling us to deliver advanced and innovative solutions to the market."

Peter Robbins of St Modwen, said: "Securing Converteam¹s commitment to this scheme is a major plus. It means that following the formal commitment from Warwickshire College which only awaits final confirmation of funding, the main two building blocks of the regeneration scheme will be in place. This decision justifies the efforts put into the long period of preparatory work by Rugby Borough Council and ourselves."

For further information contact Peter Robbins of St Modwen (0121 222 9400) or Tamara Meahan of Converteam (01788 563563). Issued by Paul Raymer of Howle Chapman Raymer (0121 313 1000).
Ref: MOD/35/08