14th Oct 2013 09:52
LONDON (Alliance News) - Property firm Capital & Regional PLC Monday said it has agreed to sell its Great Northern Warehouse property in Manchester to Resolution Property for an initial cash consideration of GBP71.1 million.
Part of the proceeds of the sale will be used to repay the loan secured on the property, following which there will be no debt on the company's balance sheet, Capital said.
As part of the deal Capital is entitled to additional deferred consideration resulting from the installation and letting of a digital media screen at the property. This will be subject to obtaining planning consent and, in the meantime, will not be reflected in the company's net asset value.
Taking into account the deferred consideration and the deduction of rent free top ups, the company expects the total consideration receivable to be close to the GBP72.5 million valuation of the property as at June 30.
The borrowings, which are recourse to the group, are secured against the asset totalled GBP57.5 million at an loan to value of 79%.
Great Northern Warehouse contributed GBP1 million to Capital's profit for the six months ended 30 June 2013, primarily as a result in changes in the mark to market of financial instruments.
Completion of the sale is expected to take place at the end of October.
The stock was trading at 42.50 pence Monday morning, up 1.00 pence or 2.4%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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