St. Modwen Properties PLC the specialist regeneration property company, is pleased to announce that, through its 50% owned subsidiary Key Property Investments Limited, a joint venture with Salhia Real Estate of Kuwait, it has agreed to purchase the Elephant & Castle Shopping Centre from UK Land plc for £29.25m.
The acquisition is conditional upon shareholder approval being gained by UK Land. The Directors of UK Land have given irrevocable undertakings in respect of their personal shareholdings and those of certain parties associated with them, which represent in total 49.4% of the current issued share capital of UK Land.
The Elephant & Castle Shopping Centre is a largely freehold retail, leisure and office complex of 338,500 sq.ft built in the 1960’s and occupying the majority of an island site formed by the New Kent Road, Walworth Road and Elephant Place in the Borough of Southwark in South London.
Rental income net of irrecoverable service charge expenditure is currently some £2.4m per annum producing a net initial yield of 7.8%.
Anthony Glossop, Deputy Chairman and Chief Executive of St. Modwen, commented
“We are delighted to have exchanged contracts to acquire The Elephant & Castle Shopping Centre. This will bring the number of shopping centres that we hold either outright or through joint ventures to fourteen of which six are in the Greater London area. All have been acquired with a view to their long-term regeneration either by refurbishment or redevelopment, whilst improving performance in the short-term, through a programme of active “hands-on” management.
The Elephant & Castle offers similar opportunities to the earlier centres we have acquired. There is scope for short-term benefits through active management and there are undoubted prospects for longer-term more significant regeneration.
We are aware of some of the wider regeneration issues that have been under consideration in Southwark and look forward to working with the Local Authority in improving the provision of facilities for the local community.”
For further information please contact:
St Modwen Properties PLC 0121 456 2800
Anthony Glossop, Deputy Chairman & Chief Executive www.stmodwen.co.uk
Bill Oliver, Finance Director
Weber Shandwick Square Mile
Peter Gaze/Trish Featherstone 0207 950 2800