Land Securities takes stake in X-Leisure Unit Trust to 95 per cent

19th Sep 2013 10:39

Land Securities, the UK's largest commercial property company, has agreed to purchase a further 36.5 per cent stake in the X-Leisure Unit Trust, taking its total ownership to 95 per cent. The total cash consideration of £104m represents a price per unit of 37.96p. The X-Leisure portfolio comprises 16 schemes, totalling 3.1m sq ft of prime leisure and entertainment space, including X-scape in Milton Keynes and Brighton Marina. The deal follows Land Securities' decision at the start of this year to take a controlling stake in the Trust, the UK's largest leisure fund, which at August 2013 had assets valued at £590m, annualised net rental income of £39.6m, and a net initial yield of 6.35%.Land Securities' Executive Director Richard Akers said: "Eighteen months ago Land Securities had no major standalone leisure assets. "We are [now] the UK's biggest leisure landlord with significant exposure to a sector which is seeing strong occupational demand. We have gained control of X-Leisure without paying a premium."The Trust was scheduled to expire in December 2014, however in July of this year a resolution was passed to extend the life of the Trust for a further five years, triggering an option for unit holders to retire their holdings. The majority of unit holders exercised that right. Land Securities' acquisition of the additional 35.6% of the Trust is unconditional and completion is expected to take place by no later than September 26th of this year.NR