GE Real Estate UK (“GE Real Estate”) and Paradigm Real Estate Managers (“PREM”) have created a leveraged joint venture (the “Joint Venture”) to acquire 148 Kwik-Fit specialist fitting centres for £103.7 million reflecting a net initial yield of 5.3%.

The 148 property portfolio, which are located throughout the UK, have been acquired through a sale and leaseback transaction and are let to Kwik-Fit UK on 25 year leases with fixed uplifts in years 5 and 10. The properties are generally well-located in town centres and many offer redevelopment opportunities.

Simultaneous with the transaction, GE Real Estate and PREM have entered into a development agreement with Kwik-Fit, which will enable the joint venture to assess and pursue redevelopment schemes. Kwik-Fit will also have the opportunity to benefit from any redevelopment profit after the payment of a priority return to the Joint Venture.

Mike Rowan, Managing Director of GE Real Estate UK, said: “This is a highly innovative transaction which not only enables us to work with our new client, Kwik-Fit to fulfill its property requirements but also will enable us to create value from the portfolio together, over time. Furthermore, this deal dramatically extends our regional presence throughout the UK.”

Bill O'Hara, director of Paradigm Real Estate Managers Limited, said: “We are very excited by the opportunities this acquisition provides. The transaction provides a strong core income together with development options across the UK which provide the opportunity to work co-operatively with Kwik-Fit in obtaining relocations and maximising development value.”

Montagu Evans acted on behalf of the joint venture. Savills acted on behalf of Kwik-Fit.

RBS provided debt finance for the transaction.

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About GE Real Estate GE Real Estate (www.gerealestate.com) is one of the world's premier commercial real estate companies with USD54 billion in assets and a presence in 24 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.

GE Commercial Finance (www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With over US$233 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.

About Paradigm Real Estate Managers Limited Paradigm Real Estate Managers Limited (PREM) commenced activities in 2001 to provide a conduit for private equity funds into the property market on behalf of private individuals and clients of Montagu Evans.

Since inception PREM have transacted over £800 million of property investments earning investors over £40 million pre tax profits on those projects exited so far, representing a 35% return on equity invested.

PREM provides on behalf of private equity investors research based opportunities to invest directly into the property market by means of partnership and corporate structure. PREM invests equity jointly with investors in each project.

About Kwik-Fit Kwik-Fit group operates from over 1,700 specialist fitting centres (including franchises) through out the UK, France, Germany and Holland, as well as some 200 mobile fitting vehicles. In addition, Kwik-Fit Financial Services operates as an autonomous division in the UK selling motor and household insurance policies as well as other financial products.

For4 further information, please contact: Nicole Marino, GE Real Estate contacts in London Tel: 020 7831 3113 Email: nicole.marino@fd.com