Land Securities to increase its stake in X-Leisure

Real estate group Land Securities is set to increase its stake in X-Leisure - the company behind the Xscape and SNO!zone entertainment centres in the UK.

The FTSE 100 company has been the green light from the unit holders of X-Leisure Unit Trust to acquire 100% in X-Leisure from property investment company Capital and Regional.

Land Securities said it was an important step towards gaining a further 42% interest in X-Leisure Unit Trust and whole ownership of the company's management fund and general partner.

The transaction remains subject to approval from Capital and Regional shareholders, banks and regulators.

Richard Akers, Executive Director at Land Securities said Friday: "We have set out our plan to increase the proportion of leisure in our business and today's announcement represents a significant hurdle cleared in the purchase of the majority of the X-Leisure fund and responsibility for the management of the assets."

The X-Leisure Unit Trust is the market dominant investment portfolio of leisure property in the UK.

Land Securities has a market capitalisation of £6,382m. Shares fell 0.55% to 819.00p at 14:40 Friday.

RD