Land Securities’ and the Pears Group’s joint venture Telereal agreed several deals last week, as it exploits its £2.4bn acquisition of the British Telecom (BT) property portfolio.
Telereal has created a joint venture with Bovis Homes to develop a giant telephone exchange and adjoining land in the centre of Tunbridge Wells.
The 3.6-acre (1.5ha) Kent site was identified by Telereal as surplus to BT’s requirements and the new Bovis jv has submitted a detailed planning proposal for a 120-unit private housing and sheltered retirement scheme.
Telereal has also sold its 13-acre (5.3ha) Bordesley Green site in Birmingham to MarPlant.
MarPlant plans to develop part of the site into a building for its own occupation. The remainder will be converted to light industrial use.
It could provide over 500,000 sq ft (46,450 sq m) of space.
The Tunbridge Wells and Birmingham deals will net Telereal over £11m.
BT has also sold its former telephone exchange in the Lace Market area of central Nottingham to an SPV called Lace Market Properties, which plans to redevelop the 50,000 sq ft (4,645 sq m) building as flats.
Telereal has also secured the sale of BT’s long leasehold interest in the 65,000 sq ft (6,039 sq m) Edinburgh House office complex in Kennington to J Sainsbury Developments.
Both sites were part of the small number withheld from the 15,000-site portfolio acquired by Pears and LandSec.
However, Telereal advised BT on the sales, as part of its contract to provide consultancy and estate management services to BT.
Ray Jenkins, managing director of Telereal, said: “These transactions demonstrate our commitment to maximise returns as soon as possible from our newly acquired estate.
“We are actively working to develop other opportunities to bring to market.”
Telereal has also assigned BT’s lease for the 45,000 sq ft (4,181 sq m) 17-19 Rochester Row, SW1, to Capita Business Services.
The lease expires in September 2007. The rent is £1.38m pa, equating to £31 per sq ft (£334 per sq m).
Telereal was represented by DTZ, and Capita Business Services by Tuckerman.
EGi News 12/08/02
