FOR IMMEDIATE RELEASE
14 June 2022
LONDON & ASSOCIATED PROPERTIES PLC
SURRENDERS LEASEHOLD INTEREST IN WEST
BROMWICH SHOPPING CENTRE
London & Associated
Properties PLC (“LAP” or “the Company”) today announces it has
exchanged unconditional contracts to surrender its leasehold
interest in Kings Square, West
Bromwich to the freeholder, Sandwell Council for a premium
of £4.75 million, representing a 5% discount to 2021 year-end
valuation. Completion is scheduled for 29
July 2022 and the proceeds will be reinvested in new real
estate.
Kings Square forms part of a portfolio used as collateral for a
1997 debenture from Aviva expiring in August
2022 which LAP is in the process of refinancing.
The disposal continues LAP’s stated strategy of repositioning
its portfolio away from shopping centres. Following the sale, the
Company’s principal income-generating property assets comprise, by
value: 19% industrial; 35% mixed-use retail with a strong food
offer; 27% community-orientated town centre retail; and 19% other
investments (including the current market value of LAP’s 41.5%
holding in Bisichi PLC).
John Heller, LAP’s Chief
Executive Officer, said: “The Board constantly reviews LAP’s mix of
assets and is satisfied that our investments represent a
combination of strong current income, diversified asset class risk
and realistic opportunities for growth over the medium term.”
Ends.
Contact:
John Heller, CEO,
LAP.
Tel: 020 7415 5000
Baron Phillips, Baron Phillips
Associates.
Tel: 07767 444193