The firm will pay 拢91m for full control of portfolio that includes Savile Row office building
Contractor Kier has bought out Lloyds bank鈥檚 50 per cent stake in its real estate portfolio for 拢91m.
For sole control of Kier Developments Limited, Kier will pay 拢35m in cash now, 拢30m in October 2012, and 拢26m in October 2013.
Kier said it will develop and sell on the assets, and so has re-valued the property - the buyout will not change its overall cash position.
For the financial year ending 30 June 2010, Kier Developments lost 拢2.7m before tax.
The portfolio includes:
- Two prime office buildings in Cavendish Place and Savile Row in central London
- A mixture of commercial and residential land in Frimley, Swindon, Southampton, Heathrow, Uxbridge and Ashford
- A retail development in Chichester which is currently expected to have been sold by 30 June 2011
- Two industrial units in Weybridge, which are expected to be sold shortly, and a further industrial unit in Romford.
Kier鈥檚 chief executive, Paul Sheffield, said: 鈥淲e would like to thank Lloyds Banking Group for its involvement in the joint venture over the last nine years. We are delighted to conclude this transaction, which will offer exciting development opportunities and create significant value for the whole Group over the next few years.鈥�
No comments yet