The firm will pay £91m for full control of portfolio that includes Savile Row office building
Contractor Kier has bought out Lloyds bank’s 50 per cent stake in its real estate portfolio for £91m.
For sole control of Kier Developments Limited, Kier will pay £35m in cash now, £30m in October 2012, and £26m in October 2013.
Kier said it will develop and sell on the assets, and so has re-valued the property - the buyout will not change its overall cash position.
For the financial year ending 30 June 2010, Kier Developments lost £2.7m before tax.
The portfolio includes:
- Two prime office buildings in Cavendish Place and Savile Row in central London
- A mixture of commercial and residential land in Frimley, Swindon, Southampton, Heathrow, Uxbridge and Ashford
- A retail development in Chichester which is currently expected to have been sold by 30 June 2011
- Two industrial units in Weybridge, which are expected to be sold shortly, and a further industrial unit in Romford.
Kier’s chief executive, Paul Sheffield, said: “We would like to thank Lloyds Banking Group for its involvement in the joint venture over the last nine years. We are delighted to conclude this transaction, which will offer exciting development opportunities and create significant value for the whole Group over the next few years.”