British Land and Great Universal Stores have confirmed that they are in talks to form a joint venture aimed at maximising the performance of GUS’s £883m property assets.
GUS’s portfolio consists of 1,047 investment properties, 837 of which are freehold and 106 long leasehold. The jewels in its property crown are The Forge shopping centre in Glasgow and Connswater retail mall in Belfast. Around 85% of the holdings are shops and a further 12% are office properties. Altogether the portfolio generates £65.7m pa. Leases with more than 15 years to run represent 70% of the portfolio.
Neither party would reveal details of the proposed venture and it is unclear whether GUS approached property companies other than John Ritblat’s British Land. Colliers Erdman Lewis, taken over by Conrad Ritblat last year, manages and values GUS’s portfolio.
GUS is the UK’s number one mail order group owning Kays, Choice, and Marshall Ward. It also owns Burberrys, the upmarket clothing chain.
EGi News 18/02/97
