Land Securities PLC
09 August 2002
9 August 2002
Land Securities PLC enters into Joint Venture in respect of London Hilton
Land Securities has entered into a joint venture with London and Regional
Properties Limited ('London and Regional') in relation to the freehold interest
in the London Hilton. London and Regional holds a controlling interest in the
joint venture and will manage it. Land Securities has received £157 million as
a consequence of London and Regional's investment into the joint venture
company. This investment provides Land Securities with a significant release of
equity.
Mark Collins, Chief Executive of Land Securities Portfolio Management,
commented, 'We have owned the London Hilton, a significant landmark building in
Mayfair, for many years and during this time through various lease
re-structures, achieved significant added value from this property. However, it
no longer sits within our core areas of activity and we believe the time is
right for us to release equity from this investment.
'This joint venture allows us to achieve a substantial release of equity from
the London Hilton and to attract a good partner with relevant expertise in the
hotel sector.'
The London Hilton is freehold, and let to Hilton International Hotels (UK)
Limited until December 2033 at a current rent of about £8.1m per annum
reviewable annually in line with retail prices index and with open market
reviews at December 2007 and then every eight years thereafter. The lease is
guaranteed by Hilton Group PLC.
The London Hilton is one of the most prestigious hotels in London. It is a
5-star 446-bedroom conference hotel with full facilities in a prominent
29-storey tower in a prime Mayfair location on Park Lane.
-Ends-
For further information please contact
Land Securities PLC
Emma Denne
+44 (0)20 7413 9000
Financial Dynamics
Stephanie Highett/ Dido Laurimore
+44 (0)20 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
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