7th May 2014 14:11
LONDON (Alliance News) - Serviced Office Group PLC Wednesday said it has exchanged contracts for the sale of its building in Crawley to Pineview Property Ltd in a deal worth GBP1.1 million in cash.
The AIM-listed company said it will run the building as a business centre until July 31 at which point it will be transferred as a going concern.
It plans to use GBP510,000 of the proceeds to satisfy a deferred fee it will owe the Royal Bank of Scotland due to the sale. the parties have a profit participation fee arrangement as part of a refinancing deal Serviced Office Group did with the bank in October 2012.
The balance of the proceeds from the sale will be retained by Serviced Office Group.
Service Office Group said the sale completes its strategy of selling its remaining freehold property assets in order to focus its resources on leasehold and management contracts of properties in Central London.
In a separate note, the company said it has appointed Paul Alexander as chief financial officer.
Alexander was previously finance director at Avanta Managed Offices Ltd, which was acquired by the company in July 2013. He was part of the team that established that business in 2004.
Serviced Office Group shares were trading at 130.00 pence Wednesday afternoon, down 1.50 pence or 1.1%.
By Anthony Tshibangu; [email protected];
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