MEPC - Industrial Development - Thanet, Manston Airport

Date: 03 Aug 1999

MEPC plc. and the Wiggins Group plc. have exchanged contracts for the development of 350 acres on London-Manston Airport and the adjacent Manston Business Park. Wiggins will retain control of the airport and the airport operational land.

MEPC will acquire land from Wiggins on demand at an initial price of £100,000 per acre for development. Under the profit share arrangement, MEPC will take a priority return on all development with surplus profits thereafter being split equally between the parties. MEPC and Wiggins, as the airport operator, will work in partnership to drive forward the development of industrial and air related accommodation together with the growth of London-Manston Airport as a major freight and passenger service provider for the South East.

In addition, MEPC will fund Wiggins' development of 305,000 sq ft of air related buildings for £18,000,000. Wiggins will feel back the whole accommodation for a 25 year term at an initial rent of £1,677,000 per annum. Wiggins will in turn sublet the accommodation to air related businesses on flexible terms.

Oliver Iny, Chief Executive of Wiggins Group plc., said: "This a great step forward for Wiggins and the people of Thanet. We have to date made a tremendous investment in the future prosperity of Thanet which has been recognised by the involvement of a partner of the quality of MEPC in our future plans for London-Manston Airport and Manston Park.

I look forward to working together with MEPC on this development which we believe will be the engine room for economic growth in East Kent. I also look forward to discussing with MEPC other developments we have in mind."

Robert Ware, Deputy Chief Executive, said. "With ever increasing growth of air traffic in the South East, London-Manston offers considerable potential for handling passengers and cargo for the London and South Eastern market."

"As Wiggins expand the commercial operations of the airport to service the increased demand for landing slots, we look forward to working with them to meet the associated demand for office and industrial accommodation from air-related occupiers. In the long term, we expect Manston to achieve critical mass as a new air-related business park for East Kent."

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