It will also have been issued pounds 500m of senior debt by the company and have a pounds 200m investment in its equity. The portfolio produced net rental income for GUS of pounds 64m in the year to March 1996. Following the creation of the new joint venture, GUS will receive an income from its interest at least equivalent to 78 per cent of the income it currently receives for the first 12 months.
Great Universal Stores and British Land have reached agreement on forming a joint venture company which will own GUS's pounds 868m investment property portfolio. The joint venture will own 982 properties, which are mainly freehold and long-leasehold. On completion GUS will have received pounds 200m in cash for British Land's investment in the venture.