8th Nov 2013 10:22
LONDON (Alliance News) - Retail and educational interiors group Havelock Europa Friday said it plans to sell its long-leasehold property in Hertfordshire to Nemesis Commercial Ltd for GBP1.1 million in cash.
Fontana House in Letwowrth Garden City is currently occupied by Showcard Print Ltd, which was part of Havelock until its disposal in April 2012. At the time of the disposal, the long leasehold property was retained by Havelock and leased to the printing firm, providing Havelock with a rental income of GBP150,000 per year.
Following the Sale, Havelock will no longer receive the rental income associated with Fontana House.
Havelock intends to apply the proceeds of the sale to reduce its bank debt, which stood at GBP4.8 million at June 30.
As a result of the loss of rental income, the sale is expected to be earnings dilutive, although the reduction in its indebtedness is in line with a longer-term strategy.
The stock was trading at 19.90 pence Friday morning, up 0.77 pence or 4.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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