British Land JV To Develop New Broadgate Site For UBS >BLND.LN

2nd Aug 2010 07:16

LONDON (Dow Jones)--British Land Company PLC (BLND.LN) and Blackstone Group said Monday their joint venture company, Bluebutton Properties, has signed an agreement for leases with UBS AG (UBSN.VX) to develop a new 700,000 sq ft building on the Broadgate Estate. MAIN FACTS: -A new 700,000 sq ft trading building, bespoke to UBS requirements, to be developed on the existing site of 4 and 6 Broadgate -Initial headline rent of GBP54.50 per sq ft with annual RPI linked increases with a weighted average lease length of 18.2 years -Deferral of breaks in existing UBS lease agreements on other Broadgate buildings -Income security improved: increases average lease length at Broadgate by up to 2.4 years -Development costs of around GBP340 million (excluding land and interest costs) -Practical completion to shell and core scheduled for the second half of 2014 -Transaction subject to planning approval -British Land will be appointed by the Joint Venture to manage the development and will receive fees for this work. -On receipt of planning, construction work is expected to start in mid-2011 with practical completion to shell and core achieved during the second half of 2014. -British Land shares closed Friday at 461.8 pence valuing the company at GBP4.03 billion. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires August 02, 2010 02:16 ET (06:16 GMT)