Connect Group concludes sale and leaseback in smaller tranches will deliver more value

Mon, 23rd Sep 2019

Connect Group intended to sell selected Tuffnells freehold and long leasehold properties but has concluded splitting these properties into smaller tranches will realise greater value. The company has announced a contract that will dispose of a tranche with Urban Logistics REIT plc for the sum of up to £9.9m (excluding VAT) payable in cash. Jos Opdeweegh, Chief Executive Officer of Connect Group, commented on the transaction: 'The sale and leaseback of this tranche of properties is another step in our strategic plan and ambition to reduce the Group's net debt position to a targeted net debt/EBITDA ratio of 1x by FY2021 as announced on 22 January 2019.' 'We will continue to explore other possible sale and leaseback opportunities for the remaining Tuffnells freehold real estate portfolio where those opportunities meet the Board's expectations in respect of value, economic return and timings as this transaction with Urban Logistics does so. Progress continues to be made on the key priorities referred to in our interim financial results published on 1 May 2019 and we look forward to presenting the Group's preliminary financial results on 6 November 2019.' At 9:37am: (LON:CNCT) Connect Group PLC share price was -0.25p at 38.45p Story provided by StockMarketWire.com

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