23 January 2001
A consortium of leading UK landlords, comprising The British Land Company Plc, Canary Wharf Group plc, Legal & General Property Limited, Morley Fund Management, and Prudential Property Investment Managers Limited, has selected HighSpeed Office Ltd, as their preferred broadband service provider, to offer high speed telecommunications services to the tenants within their office buildings. Additionally, the Consortium is in advanced discussions with 15 other UK property owners to join in this new opportunity. In aggregate, this would represent approximately 85 million square feet of office space in over 2,000 buildings in the UK.
HighSpeed Office Ltd is backed by ARC Associates and Marconi Plc. Marconi is a strategic partner and minority equity investor in HighSpeed Office and will provide systems design, equipment procurement, network rollout, project management, installation and commissioning services.
HighSpeed Office will work with the landlords to offer best-of-class telecommunications infrastructure and affordable high speed services to tenants' desktops. Services on offer include voice, secure Internet access, data, and video capabilities and would be accompanied by high quality support to tenants. Furthermore, a range of software applications and e-commerce services from leading suppliers would also be available.
Chris Butchers, Chief Executive Officer of HighSpeed Office, said:
"We are delighted to be working with some of the largest commercial property owners in the UK in this ground-breaking initiative. Forming a partnership with the Consortium enables HighSpeed Office to deliver broadband communications services to the desktops of more than an estimated one million business users throughout the UK. We will continue to seek alliances with property owners who recognise the benefits of providing broadband services to their tenants."
Nick Ritblat, a Director of The British Land Company Plc, speaking on behalf of the Consortium, said:
"The Consortium is very excited by the opportunity to join forces with HighSpeed Office to provide broadband services to our tenants. By aggregating our real estate portfolios with their telecommunications expertise, we will be able to address efficiently our tenants' growing requirements for access to electronically delivered information and services."
The Consortium is advised by Morgan Stanley Dean Witter. HighSpeed Office is advised by ARC Associates.
About The British Land Company PLC
British Land was founded in 1856 and is one of the largest quoted UK property companies with total properties under management of approximately £9.5 billion. The company has a long-term view strategy and therefore principally invests in income-producing, freehold properties to maximise their growth and potential. British Land is also active in property trading and development and augments its activities through innovative financing. Its portfolio comprises 43% offices, 46% retail, 5% development, 4% leisure and 1% industrial & distribution. Over 90% of its office portfolio is located in the City and West End and includes important developments such as the Broadgate Estate, Plantation House, Ludgate House and Regent's Place. The overall portfolio is of high quality with 91% acquired within the last ten years.
About Canary Wharf Group plc
The Canary Wharf Group is a distinctive, integrated property development company focused exclusively on Grade A office space and high quality retail facilities at the Canary Wharf Estate, a major development which is part of the Central London Office Market. Canary Wharf Group was listed on the London Stock Exchange in April 1999. Canary Wharf was subsequently admitted to the FTSE 100 and currently has a portfolio valued at over £4 billion.
About Legal & General Property Ltd
Legal & General Property Ltd is a wholly owned subsidiary of Legal & General Investment Management Holdings. The ultimate parent is Legal & General Group plc, which is one of the largest financial services companies in the UK. Legal & General Property Ltd manages over £4.5 billion of UK property in six funds for both internal and external clients. It is one of the largest property fund managers in the UK. Legal & General Property Ltd is experienced in both direct and indirect property investments and has a major development programme. The portfolios comprise 47% retail, 30% offices, 20% industrial, and 3% other uses. 50% is located in London and South East.
About Morley Fund Management
The investment management operations of Norwich Union Investment Management Ltd and Morley Fund Management Ltd were brought together in July 2000, under the business name of Morley Fund Management (Morley). Morley is responsible for the management of over £106bn of assets (as at 30.9.00) including over £8bn of UK Property. Morley is the second largest property fund management business in the UK. The Property Team, which is based in the City of London, has a dedicated in house Research and Strategy team, Specialist Occupational and Investment teams covering each sector of the market, and a development team.
Morley Fund Management is a business name of Morley Fund Management Limited (incorporated in England with Registered No. 1151805 and Registered Office 1 Poultry London EC2R 8EJ) and Norwich Union Investment Management Limited (incorporated in England with Registered No. 2152949 and Registered Office 8 Surrey Street Norwich NR1 3NG) both regulated by IMRO and members of the CGNU Group.
About Prudential Property Investment Managers Limited
Prudential is one of the largest property investors in the UK with around £11 billion under management. Its team of property professionals are committed to the investment performance of the wide range of funds under management.
About HighSpeed Office Ltd
HighSpeed Office was established early in 2000 to provide broadband services to small and medium sized businesses in the United Kingdom and Europe. The company was founded by ARC Associates, a specialist investment bank and advisory firm that has focused on the telecommunications sector since 1993.
HighSpeed Office installs the latest telecom infrastructure in landlords' buildings and offers a comprehensive range of communications services to tenants, including voice, high speed Internet, secure email, video, web hosting and data services. A large range of software applications and electronic commerce services from leading suppliers is also available to the desktop. Website: www.highspeedoffice.net
About Marconi
Marconi plc is a global communications and IT company with around 49,000 employees worldwide and sales in over 100 countries. It supplies advanced communications solutions and the key technologies and services for the Internet. Marconi plc is listed on the London Stock Exchange and the NASDAQ under the symbol MONI. Additional information about Marconi can be found at www.marconi.com
Contacts:
| Chris Butchers |
HighSpeed OfficeLtd |
(020) 7614 4012 |
| John Carrafiell |
Morgan Stanley Dean Witter |
(020) 7425 5654 |
| Lorraine Baldry |
Morgan Stanley Dean Witter |
(020) 7425 6899 |
| Paul Lufkin |
ARC Associates |
(020) 7614 4010 |
| Charlie Foreman |
Marconi plc |
(020) 7306 1545 |
| Shona Prendergast |
Penrose Financial |
(020) 7786 4884 |
| Nick Ritblat |
The British Land Company Plc |
(020) 7486 4466 |
| Peter Anderson |
Canary Wharf Group plc |
(020) 7418 2212 |
| Stuart Beevor |
Legal & General Property Ltd |
(020) 7528 6890 |
| Ian Womack |
Morley Fund Management Limited |
(020) 7809 6800 |
| Martin Moore |
Prudential Property
Investment Managers Limited
|
(020) 7548 6571 |