Marylebone Warwick Balfour - Retail - Manchester, Parrs Wood Leisure Park

Date: 19 Jan 1999

Marylebone Warwick Balfour Group plc ("MWM") today announces that the MWB Leisure Fund II, has agreed terms to forward fund a 230,000 sq ft commercial leisure park in Manchester for an anticipated purchase price of £35.5m cash.

Located on a 10.5 acre site in East Didsbury, South Manchester, the Parrs Wood Leisure Park is MWB Leisure Fund II's third such purchase since its launch in August 1998 and it takes the fund's total commitments to approximately 670,000 sq ft of commercial leisure park developments valued at over £130m. The fund has the potential to be geared to approximately £250m.

Parrs Wood Leisure Park is being developed by Thomfield Developments and is expected to be completed within two years. The scheme, which lies on the A34 close to Junction 3 of the M60 motorway, is already substantially pre-let and is anticipated to generate a rent roll of around £2.35m, reflecting an initial yield of around 6.6%.

Anchored by a Virgin Cinemas nine-screen multiplex, other tenants who have committed to the leisure park include a 60,000 sq ft Hohnes Place health and fitness centre, a 35,000 sq ft First Leisure Bowl and family entertainment centre, and Buckingham Bingo. Discussions are well advanced for an operator of the park's budget hotel, theme pub and four restaurants.

John Harrison, MWB director responsible for the Leisure Fund, said: "Parrs Wood fits our strategy of acquiring the latest generation commercial leisure parks which are of an exceptional institutional quality and which we believe will demonstrate excellent future capital growth."

Following the successful equity finance raising last August, which was oversubscribed, MWB expects that Leisure Fund II will acquire up to £250m of UK commercial leisure parks. This is in addition to the company's first fund, which is now fully invested in approximately £135m of UK leisure parks.

Investment finance was arranged and provided by NatWest Bank plc property finance group. Knight Frank acted for the fund and the developer was advised by King Sturge and Donaldsons.

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