Property

Department Stores

We are investors in 38 department stores, 26 owned directly and 12 owned within the BL Fraser joint venture. All are characterised by good income security through long unexpired lease terms and typically provide longer-term asset management opportunitiesby virture of their size and prominent locations.

Of those owned directly, 24 are subject to leaseback to Debenhams for a minimum of 26.5 years unexpired. In total these comprise 3.4 million sq ft in locations including the flagship store in London’s Oxford Street (366,700 sq ft); Market Street, Manchester (466,000 sq ft) and St Davids, Cardiff (140,000 sq ft). The total gross annual rent passing is £30.6 million. The leases provide for minimum 2.5% per annum rental increases throughout and from 2019 onwards five-yearly open market reviews.

As at 30 September 2007