8th Apr 2014 11:09
LONDON (Alliance News) - Serviced Office Group PLC said Tuesday that it has completed the sale of its building in Harrow for GBP2.4 million in cash, and has also exchanged contracts with Crowngold Properties Ltd for the unconditional sales of its building in Hayes for GBP3 million in cash.
The AIM-listed company is a provider of flexible office space, which currently operates 37 business centres, predominantly in the London area.
Serviced Office said that it will continue to operate the Harrow building as a business centre until the end of July, when it will then be handed over to the buyer.
It said that the sale of its building in Hayes replaces the previous conditional sale of the Hayes property, it announced in December last year to Augur Property Ltd. It said it expected the sale to be complete by the end of June.
For the year ended December 31, 3012, Hayes reported a profit of GBP110,000, and as at June 30 2013, had a book value of GBP1.7 million.
Serviced Office said it will use the proceeds from both the sales to further expand its operations in central London, as well as to pay off debt.
It said it will now recognise a pre-tax profit on the sale of both properties of approximately GBP1.1 million, after the provision for profit share payable to Royal Bank of Scotland Group PLC, compared to the previously announced figure of GBP1.15 million.
Serviced Office shares were trading 2.7% lower at 127.50 pence per share Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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