3rd Aug 2021 14:02
Ground Rents Income Fund PLC - real estate investment trust - Sells its subsidiary which owns the freehold interest in Manchester's Beetham Tower to an unnamed private investor for an undisclosed sum. The disposal releases Ground Rents from all litigation and freeholder obligations relating to the property that was originally acquired in 2012.
Beetham Tower has proven a headache for Ground Rents, after a building defect was identified in 2014 and in 2019 the High Court passed a judgement requiring the freeholder to perform the repair. The funding of the repair defaulted to Ground Rents following the collapse of the original contractor, Carillion Construction Ltd.
"The property has been a very challenging investment for the company but completion of the disposal is a positive step forward," the company comments.
The sale will result in the reversal of a GBP2.9 million provision for the cost Ground Rents' subsidiary would have incurred.
Current stock price: 73.00 pence; up 3.2% on Tuesday
Year-to-date change: down 0.3%
By Will Paige; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Ground Rents