22nd Aug 2022 09:54
(Alliance News) - Circle Property PLC on Monday said it has sold a business park in Milton Keynes and progressed on the sale of two properties in Birmingham and Staines.
Circle Property is a London-based buyer, developer and manager of regional office assets in the UK.
The company said it has exchanged contracts to sell its Kents Hill Business Park in Milton Keynes to Corum XL Ltd for GBP17.2 million.
Circle Property bought Kents Hill in 2013 for around GBP11 million. In financial year 2022, pretax profit from the buildings was GBP560,000.
The contract comprises of three buildings of 80,576 squared foot of office space, and the sale price represents a 10% increase to the March 31 valuation of GBP15.7 million.
Two out of three of the buildings were sold on exchange at a price of GBP12.7 million, the company said. Meanwhile, the sale of the third building, for GBP4.5 million, is expected to take place at the end of the year following completion of its refurbishment.
Further, Circle Property said it has exchanged contracts to sell Cheltenham House, Temple Street, Birmingham to AS Leisure Properties Ltd for GBP4.7 million. Cheltenham House comprises of around 16,469 squared foot of office and restaurant accommodation.
However, the sales price represents a 9.6% decrease to the March 31 valuation of GBP5.3 million. The sale is expected to be complete on September 7.
Circle Property also has sold Elizabeth House, London Road, Staines comprising of approximately 14,829 squared foot of office accommodation to MAP Commercial Properties Ltd for GBP3.5 million.
This is a 17% increase to the valuation price of GBP3 million and the sale is expected to be complete on September 28.
Following completion of the sale of the two buildings at Kents Hill, the company's cash balance is around GBP16.5 million.
"The net proceeds from the disposals will be held as group cash and the board expects that a minimum of two returns of capital will be made to Shareholders, the first of which is expected to occur by March 2023," Circle Property added.
Shares in Circle Property were up 2.4% to 250.80 pence each in London on Monday morning.
By Sophie Rose; [email protected]
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