MG Rover's operational activities on the land will not be restricted but provision is made for the release of surplus land at MG Rover's option. MG Rover Group chief executive Kevin Howe says: "This deal generates cash for our cars business today and allows us to continue to invest in the car company's many product development activities. It puts to work one of our assets but in no way restricts the day-to-day running of our business."
For St Modwen, the deal is a natural extension of an existing business relationship. Executive director Richard Froggatt says: "We set up a partnership with MG Rover in 2001 to regenerate land which was surplus to operational requirements. This is a very similar sale & leaseback transaction to those we have already completed with Goodyear, Corus, Alstom, Invensys and others."
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