ALSTOM UK has secured a sale and leaseback agreement for its UK operational property portfolio. ALSTOM has selected Key Property Investments the joint venture between St Modwen Properties PLC and Salhia Real Estate k.s.c. as its partner. St Modwen and KPI have built up a considerable reputation in partnering industry having already concluded transactions with Invensys, Corus, MGRover, Marconi, Goodyear and others.
The portfolio comprises 19 properties providing approximately 8 million sq ft on 500 acres of land. The sites are in Rugby, Lincoln, Stafford, Birmingham, Milton Keynes, Eastleigh, Manchester and Preston with two sites in Scotland. The leaseback structure provides operational efficiency for ALSTOM with leases varying in duration from between 5 and 15 years. A price of £111 million was paid for the portfolio.
The first priority in this transaction is to secure the long-term operational requirements of ALSTOM within a partnership structure that enables short or long term surplus accommodation to be let. Land will be brought forward for development where opportunities arise.
Cyril Leonard acted for ALSTOM throughout and will continue to advise on the operational/development partnership with the purchaser.
Richard Froggatt Executive Director of St Modwen and Chairman of KPI said “This is a long term partnership arrangement and we are looking forward to working with ALSTOM. We set very demanding targets to deliver this transaction in record time. Partnerships are at the heart of our business and this deal means that we have added another 500 acres to our hopper.”