5th Jan 2016 15:15
LONDON (Alliance News) - K&C REIT PLC Tuesday said it has agreed to sell one of its properties in Berkshire that made up its original portfolio for a small profit, and said it plans to sell another property in the area.
The property was one of three purchased by K&C to form its original portfolio when it began trading on AIM in mid-2015, and K&C stated when it first listed that the properties would not form a material part of its property portfolio in the long term.
The property, 24 Martingale Chase in Newbury, Berkshire, has been sold for a total cash consideration of GBP285,000, making K&C a profit on the GBP250,000 it spent on acquiring the property in March 2014. K&C was also generating GBP1,015 in gross monthly rent from the property per month.
The net proceeds from the sale will be used to repay GBP228,000 of outstanding loan notes. Of that total amount, Director Oliver Vaughan holds USD62,000 worth of the loan notes.
Importantly, K&C said it will pay the outstanding loan notes in accordance with the original terms agreed, but said it has agreed a new repayment date with the loan note holders. K&C will make the repayments once it has either sold the other Berkshire property based down Cheap Street in Newbury, completes a fundraising of at least GBP3.5 million, or on April 28, 2016 - whichever happens first.
In return for the amended repayment date, K&C will pay interest of 10% per year, starting from the completion of the sale announced Tuesday, which is expected to occur on January 22.
K&C had already sold 10 Glebelands in Thatcham, Berkshire, back in November leaving it with one of its three original properties in the county to sell.
K&C REIT shares were untraded on Tuesday afternoon, last trading at 7.5 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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