MEPC - Heathrow, Bedfont Lakes, Lakeshore

Date: 03 Aug 1998

PRICOA Property investment Management, on behalf of its client The Hanover Property Unit Trust, has agreed the funding of the next phase of its major business park development at Lakeshore, Bedfont Lakes, Heathrow, with MEPC for a total commitment of approximately £100 million.

This new business park will comprise three top-quality office buildings, totalling 24,150 sq m (260,000 sq ft), arranged around a central landscaped courtyard on a 5 ha (13 acre) site overlooking the Bedfont Lakes country park,

The funding is subject to obtaining detailed planning consent. An application has been made to the London Borough of Hounslow by Auketts, Hanover's architects, for three buildings of 11,150 sq m (120,00 sq ft), 7,900 sq m (85,000 sq ft) and 5,100 sq m (55,000 sq ft), together with ground and lower-ground car parking. Rutland Project Management will be responsible for the construction of the business park with delivery of the buildings to be provided between December 1999 and September 2000.

Lakeshore is adjacent to MEPC's existing New Square business park holding. New Square comprises seven buildings totalling 32,000 sq m (344,000 sq ft) on a 7.3 ha (18 acre) site. MEPC acquired the outstanding 50% share in New Square from IBM in January this year creating an investment with a value in excess of £125 million.

James Tuckey, Chief Executive of MEPC plc, comments: "Bedfont Lakes is one of the best business locations in the Thames Valley and on completion of lakeshore, MEPC will become owners of the largest business park in single ownership in the Thames Valley. Demand for quality office space in the area is at a premium and is forecast to remain high. We intend to create a high-quality business park development at Bedfont Lakes to rival nearby Stockley Park as one of the foremost business park destinations of Europe.

Peter Farnfield, Director of PRICOA and Fund Director of Hanover said: "We are delighted to have agreed this transaction with MEPC as it represents another endorsement for Bedfont Lakes as a premier business park and follows our successful development of Clockhouse Place last year. On completion of this latest phase, Lakeshore will provide some of the most attractive space in the Heathrow and Thames Valley office marker and will undoubtedly enhance the value of Hanover's other important land holdings at Bedfont.

Jim McAllister of Rutland Project Management said. "We are delighted to be working with Hanover and MEPC on this. next phase and to continue our long standing involvement with Dedfont Lakes.

Jones Lang Wootton represented MEPC in this transaction. Healey and Baker and Strutt & Parker have been instructed to market the business park space.

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