27th Jan 2005 07:00
Sovereign Reversions PLC27 January 2005 Sovereign Reversions plc Acquisition of Shared Equity Loans The Board of Sovereign Reversions plc ("Sovereign") announces that on 26 January2005 its wholly owned subsidiary, Sovereign Retirement Capital Limited,purchased a portfolio of shared equity loans from the property division ofMontpellier Group plc for a cash consideration of £1.89m, to be met from theCompany's existing resources. The loans are secured on individual flats andbungalows in sheltered housing developments in Southern England and are mainlyconcentrated in three such developments. In lieu of interest, the loans entitlethe lender to a share in the increase in the value of the property and thus arecommercially akin to home reversions. The loans will be managed by Sovereign's40%-owned associate, Home & Capital Trust Limited. As the loans were originally arranged in the early 1990's the acquisition willincrease both the embedded value and the maturity of the assets in Sovereign'senlarged portfolio. The board of Sovereign considers that properly managedsheltered accommodation is potentially an attractive sector of the propertymarket and, at the right price, will continue to seek to invest in this sector. 27 January 2005 ENDS For further information contact Simon Bloomfield, Bankside Consultants (Office: 020 7444 4149; mobile: 07771 758517) Graeme Marshall Chief Executive, Sovereign Reversions plc (Office: 01234 340511) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Renew Holdings