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LONDON-Key Property Investments, a joint venture between St Modwen Properties and the Middle Eastern investor Sahlia Real Estate, has paid £111 million ($175 million) for an 8 million-sf portfolio in a sale & leaseback deal with engineering group Alstom.

The portfolio comprises 19 properties providing approximately 8 million sq ft on 500 acres of land. The sites are in Rugby; Lincoln; Stafford; Birmingham; Milton Keynes; Eastleigh; Manchester and Preston with two sites in Scotland. The leaseback structure provides operational efficiency for Alstom with leases varying between 5 and 15 years in length.

The partnership structure means that once space becomes surplus to Alstom’s requirements it can be let on a short or long term basis, and land will be brought forward for development where opportunities arise.

Key Property Investments Chairman Richard Froggatt said: “This is a long term partnership arrangement and we are looking forward to working with Alstom. Partnerships are at the heart of our business and this deal means that we have added another 500 acres to our hopper.”

Cyril Leonard acted for Alstom.

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