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Wates C.Ldn.Props. (WLP)

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Friday 08 September, 2000

Wates C.Ldn.Props.

Disposal and Acquisition

Wates City of London Properties PLC
8 September 2000


           Proposed Disposal of Investment Properties
                               and
   Acquisition of the 50 per cent. interest in Vintners' Place
                             Limited
                    not already held by Wates


Introduction

The  board  of  directors (the 'Board') of Wates City  of  London
Properties  plc  ('Wates'  or the 'Company',  together  with  its
subsidiary  undertakings,  the 'Group')  announces  that  it  has
conditionally  agreed to sell four investment properties,  namely
90  Queen  Street, City Tower, Winchester House  and  City  Place
House  (the 'Investment Properties') to The Prudential  Assurance
Company Limited ('Prudential') for gross proceeds of £252 million
(the 'Disposal').

Furthermore, the Board announces that it has conditionally agreed
to  acquire the 50 per cent. interest in Vintners' Place  Limited
not   already  held  by  it  for  £26.7  million  from   Sumitomo
Corporation  and  Sumitomo  Corporation  (Europe)  plc  (together
'Sumitomo').

Background to and reasons for the Disposal and the Acquisition

The  Board  has been concerned for a considerable time about  the
unacceptably  large discount at which the Company's  shares  have
traded  relative  to its stated net asset value,  despite  strong
growth  in  net asset value per share over the last  four  years.
Since  its  year end the Company has seen robust property  market
conditions,  and this in the Board's view has made the  disparity
between  the Company's share price and its true worth  even  more
acute.

The  Board has therefore initiated steps to return value  to  its
shareholders ('Shareholders') and as a first step the Company has
conditionally  sold the Investment Properties to  Prudential  for
gross  proceeds of £252 million.  The gross sale price  is  at  a
discount  of 3 per cent. to the last year-end valuation  of  £259
million.   These  properties have been revalued to  the  disposal
price  as at 30 June 2000.  The Disposal will be effected by  way
of  the  sale  of the three companies (the 'Disposal  Companies')
which own 90 Queen Street, City Tower and the Group's interest in
Winchester House, respectively, and the sale of City Place House.
After  taking  into  account  costs and  the  assumption  of  net
liabilities  by  Prudential, the net  cash  consideration  to  be
received  by  Wates is expected to be approximately £246  million
and  is payable by Prudential at completion of the agreements  in
relation to the Disposal (the 'Disposal Agreements').

Completion  of the Disposal in respect of City Place House,  City
Tower  and  90 Queen Street is expected to take place immediately
following  the passing of the ordinary resolution to be  proposed
at  an  Extraordinary General Meeting convened for  25  September
2000.   Morgan  Grenfell & Co. Limited has rights of  pre-emption
over the Group's interest in Winchester House.  Completion of the
Disposal  in respect of the Group's interest in Winchester  House
is expected to take place shortly after the lapse or exercise (as
the  case  may be) of Morgan Grenfell & Co. Limited's pre-emption
rights.

The  Board  believes that the acquisition of  the  50  per  cent.
interest  in Vintners' Place Limited not already owned  by  Wates
(the 'Acquisition') represents an attractive opportunity for  the
Company  to  acquire full control of Vintners' Place.  The  Board
further  believes  that  such control is likely  to  improve  the
marketability of Vintners' Place, thereby enhancing the prospects
for  any  disposal  upon  satisfactory  terms.  Furthermore,  the
purchase price of £26.7 million represents a discount of 5.7  per
cent.  to  the net assets being acquired of £28.3 million  as  at
30  June  2000.  The consideration for the Acquisition is payable
by  Wates  to Sumitomo on completion of the Acquisition which  is
expected to take place on or before 28 September 2000.

The  Board  continues  to be committed to maximising  shareholder
value  and  is  exploring  all options for  delivering  value  to
Shareholders.

Of  the proceeds to be received by Wates following completion  of
the   Disposal,  some  £159.3  million  will  be  used  to  repay
indebtedness secured on certain of the Investment Properties  and
CityPoint,  £26.7  million to finance  the  Acquisition  and  the
balance  would  be available to be returned to Shareholders.  The
Board  expects  that  it  would be in  a  position  to  write  to
Shareholders with details of proposals for a return  of  capital,
which  it  anticipates would be around £70 million and  would  be
distributed pro rata to their shareholdings, towards the  end  of
this   year,  following  completion  of  the  Disposal  and   the
Acquisition.

Current trading and prospects

The City of London continues to experience strong demand for high
quality office property.  The Group, following completion of  the
Disposal and the Acquisition, is well placed to capitalise on the
current strength of the market.

The  Group's  development of CityPoint remains  substantially  on
time and in line with the Board's expectations and is expected to
be  completed by the end of 2000. Approximately 62 per  cent.  of
the building has now been let.

Information  on  the  Disposing  Companies  and  the   Investment
Properties

Each  of the Disposing Companies is a wholly owned subsidiary  of
Wates. Number 90 Queen Street Limited, City Tower Limited and 100
Old  Broad Street Limited own 90 Queen Street, City Tower and the
Group's  45  per cent. interest in Winchester House respectively.
The  disposal of the above three Investment Properties  is  being
effected by way of a share sale whereas City Place House is being
disposed of directly by way of an asset sale.

The  net  annual  passing  rent  receivable  in  respect  of  the
Investment Properties is approximately £14.9 million.

90 Queen Street
90  Queen  Street was developed by the Group in 1996 and provides
approximately 5,300 sq.m. of office space, together  with  ground
floor  retail  space.  The  building  is  fully  let  and  income
producing, with an annual passing rent roll of £2.77 million. The
tenants are Banca Commerciale Italiana SpA (for whom the building
is  the  headquarters for non-domestic European banking), Borders
(UK) Limited and Pret A Manger (Europe) Limited.

City Tower
City  Tower  is  a  multi-let  office  building  located  at   40
Basinghall Street, EC2. It offers approximately 12,000  sq.m.  of
office  accommodation on 20 floors. The property is approximately
97  per cent. let. The current annual contracted net rent roll is
approximately  £4.42  million of which the net  passing  rent  is
approximately £3.25 million.

Winchester House
Winchester  House is a freehold building, 45 per cent.  owned  by
the Group and developed in partnership with Morgan Grenfell & Co.
Limited, a subsidiary of Deutsche Bank. It was completed in  1998
and   is   let  to  Deutsche  Bank  as  its  investment   banking
headquarters. The building provides 26,700 sq.m. of  offices  and
features three 4,200 sq.m. dealing floors, accommodating a  total
of  1,500 dealers. It also includes a banking unit, which is  let
to  HSBC Bank plc, and three retail units, all of which are  let.
The  entire  building is income producing, the Group's  share  of
which  is £5.83 million per annum. Morgan Grenfell & Co.  Limited
has  a  pre-emption right in relation to any sale of the  Group's
interest in Winchester House.

City Place House
City  Place  House is located at 55 Basinghall Street,  EC2.  The
Group owns 50 per cent. of this long leasehold property on a side
by  side basis with Prudential. The entire building is let and is
fully income producing. The Group's share of net income from City
Place House is currently £3.05 million per annum. The tenants are
Charterhouse Management Services Limited, Cleary Gottlieb Steen &
Hamilton, the Corporation of London, The Equitable Life Assurance
Society, The Sanwa Bank Limited and Sanwa International plc.

Principal terms and conditions of the Disposal

The  Disposal Agreements provide for City Place House to be  sold
to a subsidiary of Prudential by way of an asset sale and for the
other  three  Investment  Properties to  be  sold  to  Prudential
through the sale of the Disposing Companies which own an interest
in  those  properties.  The  gross  proceeds  payable  under  the
Disposal Agreements are approximately £252 million which will  be
paid  to  the Company upon completion of the Disposal  Agreements
(subject  to  certain  adjustments).  After taking  into  account
costs of some £4 million and the assumption of net liabilities of
approximately   £2   million   by  Prudential,   the   net   cash
consideration  to  be  received  by  Wates  is  expected  to   be
approximately £246 million.

Completion   of   the  Disposal  Agreements  is  conditional   on
Shareholders'  consent. In addition, completion of  the  Disposal
Agreement  in  relation to Winchester House is  conditional  upon
Morgan  Grenfell & Co. Limited not exercising its right  of  pre-
emption  to  acquire the issued share capital of  100  Old  Broad
Street Limited which owns Winchester House. If Morgan Grenfell  &
Co.  Limited exercises its rights of pre-emption then it will  be
obliged to acquire the shares in 100 Old Broad Street Limited for
the same consideration and on substantially the same terms as are
being offered to Prudential.  The Company is required to serve  a
notice on Morgan Grenfell & Co. Limited giving it the opportunity
to  acquire such shares.  Morgan Grenfell & Co. Limited will have
up  to  a  maximum of 40 working days following  receipt  of  the
notice to consider whether to exercise the pre-emption right, and
in  the  event  that it decides to do so, Morgan Grenfell  &  Co.
Limited  will  have a further 15 working days from  the  exercise
date  to  complete  the  sale of 100 Old  Broad  Street  Limited.
However,  this  will  not  affect the  completion  of  the  other
Disposal Agreements.

Information on Vintners' Place Limited

Vintners' Place Limited is a company owned jointly and equally by
the  Company  and Sumitomo, the sole asset of which is  Vintners'
Place, a 24,500 sq.m. office building constructed in 1992. It  is
multi-let and is fully occupied and income producing. The Group's
share  of  Vintners' Place Limited's net annual rental income  is
currently approximately £3.46 million. The Group's share  of  the
net  asset value of Vintners' Place Limited was £28.3 million  as
at 30 June 2000.

As  at  30  June 2000, the Group's share of net debt in Vintners'
Place Limited amounted to £25.7 million.  The entire secured debt
of £51.6 million will be refinanced by a new £60 million facility
arranged  by  HSBC  Investment  Bank  plc  at  the  time  of  the
Acquisition.

Principal terms and conditions of the Acquisition

The  agreement  in relation to the Acquisition provides  for  the
acquisition  by  the Company from Sumitomo of  the  issued  share
capital in Vintners' Place Limited not already owned by Wates and
the  unsecured  indebtedness owed by Vintners' Place  Limited  to
Sumitomo.  The  total consideration payable by the Company  under
the  agreement is £26.7 million which will be paid by the Company
on  completion of the Acquisition which is expected to be  on  or
before  28  September  2000. Completion  of  the  Acquisition  is
conditional  upon  completion of the Disposal save  for  100  Old
Broad Street Limited.

Extraordinary General Meeting

In  view of its size, the Disposal is subject, inter alia, to the
approval of Shareholders at an Extraordinary General Meeting.   A
circular  containing  a  notice convening  the  meeting  will  be
despatched to all Shareholders shortly.

Press enquiries

Wates City of London         John              020 7588 2888
Properties plc               Nettleton
                             Rodney
                             Clutton
                             
Deutsche Bank                Jeremy Lucas      020 7545 8000
                             Andrew Zelouf



The  contents of this announcement have been approved by Deutsche
Bank  AG  London  ('Deutsche Bank') solely for  the  purposes  of
section  57  of the Financial Services Act 1986.  Deutsche  Bank,
which  is  regulated in the United Kingdom by The Securities  and
Futures  Authority Limited, is acting for Wates  City  of  London
Properties  plc and no else in connection with the  Disposal  and
the  Acquisition  and, accordingly, will not be  responsible  for
providing the protections afforded to customers of Deutsche  Bank
or  for  advising any other persons in relation to  the  Disposal
and/or the Acquisition.



                                                                                
                                                                                
                                                                          

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