21st Oct 2013 09:09
LONDON (Alliance News) - Development Securities PLC Monday said its joint venture with Patron Capital sold the Phones 4u Arena in Manchester to a Mansford Real Estate LLP Fund for GBP82.1 million.
The sale will generate in excess of GBP10 million in cash for Development Securities, it said.
The holding company, which is engaged in property development and investment, acquired the Phones4u Arena, formerly known as the Manchester Evening News Arena, in a joint venture with Patron Capital in 2010, for GBP62.2 million. Development Securities held a minority 30% stake in the joint venture.
Operated by SMG Europe, the Phones 4u Arena is the second most popular indoor arena in the world after the 02 Arena in London, Development Securities said. In addition to the 21,000 seater arena, the complex includes 128,000 square feet of office space and a multi-storey car park.
"We are pleased to have secured the sale of the Arena, three years since acquisition and in line with our business plan. The cash returned through this disposal further strengthens the company balance sheet and follows the recent concluding deal at PaddingtonCentral which realised GBP12.1 million of cash and the sale of our Broughton residential land holding earlier in the year, which also released GBP11.4 million of cash," Development Securities Chief Executive Michael Marx said in a statement.
Shares in the company were up 1.9% Monday morning, trading at 203.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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