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Rugby in $40M Jewson Sale/Leaseback

LONDON-Rugby Estates has signed a £22-million ($40-million) sale/leaseback agreement with Saint Gobain, the French building materials giant, covering 18 UK sites occupied by its Jewson builders' merchants business.

By Graham Parker | Updated on May 25, 2004

LONDON-Rugby Estates and the French building materials group Saint Gobain have signed a sale/leaseback agreement covering 18 sites occupied by Jewson builders merchants, mainly in the South East of England. It will immediately acquire one site, and has an option to take the others by the end of 2004.In the first deal, Rugby is paying £360,000 ($700,000) for a 55,000-sf freehold warehouse and office property in Wednesfield,an established industrial location near Wolverhampton in the West Midlands. The property occupies a four-acre site and is let to Jewson until 2024 at an initial rent of £180,000 ($325,000) per annum. The remaining 17 properties are covered by an option agreement, allowing Rugby to purchase the properties on or before Dec. 31, 2004, for approximately £22 ($40 million). The properties comprise more than 285,000 sf on 24 acres in a mix of freehold warehouse and trade counter units. Rugby chairman David Tye says the deal grew out of an existing business relationship with Saint Gobain. “This transaction is an important step forward in our strategy to work closely alongside owner occupiers to help them to manage their property assets and requirements effectively,” he says.

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