MEPC lifts US assets
Wednesday 01 November 1995
Deputy City Editor
MEPC, Britain's second-biggest property company, is putting its European property portfolio up for sale. Proceeds from the disposal of the assets, in the balance sheet at pounds 167m, have been earmarked for investment in Australia and the US, where the company is also spending pounds 186m on a retail property unit trust.
James Tuckey, chief executive, said: "Our European operations have performed well, but we believe there are better opportunities. We have some prime assets in continental Europe and, in due course, we expect to realise the full value."
The acquisition of the North American Property Unit Trust is for an initial pounds 84m and MEPC will assume associated borrowings of about pounds 102m. Its main assets are three enclosed shopping malls, an open-air shopping centre and three quarters of an office building freehold interest in New York.
MEPC already has retail investments in the US, having spent pounds 115m two years ago to double its presence in the US with the acquisition of two shopping malls in California's San Fernando valley and Atlanta, Georgia.
Most of the consideration for Naput comes in the form of MEPC shares, with a partial cash alternative worth up to pounds 32m.
Following completion of the deal 17 per cent of MEPC's assets will be in the US, and the retail portfolio will account for just over a third of the total.
The new shopping malls include a 1.4 million sq ft site in Jacksonville, Florida, and a slightly smaller mall in Bakersfield, California. . The freehold relates to the land beneath the 30-storey Graybar building next to Grand Central Station in New York City.
The decision to concentrate investment in the US chimes with a recent report from Jones Lang Wootton, the surveying firm, which believes the US market is rising fast, with vacancy rates down and rents and capital values increasing fast.
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
Ebola outbreak: Nowhere is safe until virus is contained in Africa, claims the top doctor who beat it in Nigera
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...