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Joint Press Release by Prudential Assurance Company Limited (Prudential), Prudential Property Investment Managers Limited (Prupim) and GIC Real Estate
Prudential and PruPIM, both wholly owned subsidiaries of Prudential plc, and GIC Real Estate Pte Ltd (GIC RE) have concluded a joint venture arrangement whereby:
- GIC RE has, through its affiliate, acquired from Prudential a 50 per cent share of Prudential’s existing economic interest in Bluewater Shopping Centre, near Dartford in Kent for an aggregate consideration of £318 million based on market values as at 31 December 2004. These interests comprise
- A 35% share in the shopping centre
- Potential share in a right of pre-emption with Lend Lease, to increase its share to 50% under certain circumstances.
PruPIM will be jointly instructed by the new joint venture company to oversee asset management. Currently the implementation of asset management is undertaken by Lend Lease. Lend Lease will continue to be responsible for the day-to-day property management as well, as they have done extremely successfully since the centre opened in 1999. PruPIM will work closely with Lend Lease with regard to strategic asset management of Bluewater and continue to represent the interests of the largest single investor in the centre.
Announcing the transaction, Dr. Seek Ngee Huat, President of GIC RE, commented:
“We are pleased to have entered into this transaction with Prudential and PruPIM. It enables us to invest in one of the largest and most innovative regional shopping centres in Europe and work alongside an established and leading investor”.
Chris Taylor, Director Portfolio Management at PruPIM, said “Having been involved as initial investor in Bluewater for virtually 10 years, we are absolutely delighted to be able to now manage our overall capital exposure to what is Prudential’s single largest asset by creating a joint venture with a leading global investor with similar investment intentions and time horizons to our own. This transaction is also testimony to the global status which Bluewater has attained with retailers and investors alike. We see GIC RE as a very compatible long term investor, and hope to build further a global basis for further collaboration. We are already co- partners in two externally managed retail funds, one in Australia and one in France/Belgium”
Other stakeholders would retain their existing shares, and Lend Lease would also retain asset management responsibilities for Bluewater.
Since opening in 1999, Bluewater has become Europe's leading retail and leisure destination. Located in North West Kent within a former quarry, one mile from junction 1A of the M25, Bluewater accommodates over 330 retailers within 1.6 million sqft (148,700 sqm) of carefully designed retail, leisure and restaurant space, set within 50 acres of landscaped parkland and lakes. Over 27 million people visit Bluewater every year. Bluewater has won over 20 major international awards across areas such as design, retail, environment and marketing including best new scheme from the International Council of Shopping Centres (ICSC) and the British Council of Shopping Centres (BCSC).
Bluewater's unique triangular design with three distinct malls and leisure villages allows for specific segmentation of the retail mix into three areas of complementary trading.
- The Guild Hall offers discerning shoppers an exclusive selection of classic and high fashion retail and lifestyle brands
- The Rose Gallery features the best of the UK High Street, with an emphasis on fashion retail, accessories and complementary offers.
- The Thames Walk provides a unique combination of entertainment and lifestyle brands, centred around the Watercircus
Bluewater was developed and is managed by Lend Lease, the integrated global real estate group.
Leasing agents for Bluewater are CB Richard Ellis.
Prudential Property Investment Managers Ltd (“PruPIM”) is a part of M&G, the investment arm of Prudential plc in the UK. As such, it is responsible for investing in and managing property investment portfolios on behalf of Prudential. It has £14.8 billion of funds under management and is one of the largest property investment managers in the UK.
PruPIM manages a UK retail portfolio comprising in excess of £3 billion of shopping centres, almost £2 billion of high street retail outlets and more than £1 billion of retail warehousing. This comprehensive exposure gives the company an unrivalled insight into retail markets.
Headquartered in Singapore, GIC RE is the real estate investment arm of Government of Singapore Investment Corporation (GIC) that manages the foreign reserves of Singapore. The company manages a multi-billion dollar portfolio of direct and indirect property investments worldwide.
This statement may contain certain “forward-looking statements” with respect to certain of Prudential’s plans and their current goals and expectations relating to their future financial condition, performance, results, strategy and objectives. Statements containing the words “believes”, “intends”, “expects”, “plans”, “seeks” and “anticipates”, and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Prudential 's control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation, and deflation; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which Prudential and their affiliates operate. This may for example in the case of Prudential result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. As a result, Prudential’s actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in Prudential’s forward-looking statements. Prudential undertakes no obligation to update the forward-looking statements contained in this statement or any other forward-looking statements they may make.
Prudential plc, a company incorporated and with its principal place of business in the United Kingdom, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has over US$300 billion (£170 billion) in assets under management, as at 30 June 2004. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.
For further information, please contact:
Ms Tan Chor Hwa
Executive Vice President
Head, Administration & Corporate Affairs
GIC Real Estate Pte Ltd
168 Robinson Road #37-01
Capital Tower
Singapore 068912
Tel: (65) 6889 8888 (Main)
Website: www.gicre.com
Martin Moore, Managing Director
Tel: 020 7548 6571
Chris Taylor, Director Portfolio Management
Tel: 020 7548 6911
Jane Batten, PR and Communications
Manager Tel: 020 7548 6632
Prudential Property Investment Managers Ltd
Princeton House
271/273 High Holborn
London
WC1V 7NE
Tel: 020 7548 6600 (Main)
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