Acquisition of strategic Camden assets

Market Tech Holdings Limited

("Market Tech", "the Company" or "the Group")

Acquisition of Further Two Strategic Income Producing

Real Estate Assets in Camden

£125m acquisition facility agreed

Market Tech Holdings Limited (AIM: MKT), the holding company that combines iconic real estate assets with an e-commerce business and owns and manages the main Camden Markets in Central London, is pleased to announce that it has exchanged contracts to acquire two significant commercial real estate assets, The Interchange Building and Camden Wharf as well as securing the entire freehold of Camden Lock Market.

Both properties, which are currently let as offices, retail and leisure units have extensive frontage to the historic Regents Canal, are physically linked to existing assets and will strategically strengthen Market Tech's real estate position within Camden town centre by controlling mix and yields.

The purchase of the Camden Lock Market freehold allows Market Tech to retain the percentage of annual income previously paid to the freeholder.

The total consideration amounts to £95 million and is to be paid in cash plus stamp duty of £3.8 million. Completion of Camden Wharf is set for 5 March 2015 and the Interchange for 24 March 2015.

The Interchange Building, Oval Road, London NW1

The Interchange Building is an iconic 65,000 sq ft Grade II Iisted property currently let to global media group Associated Press for the use of B1 offices. Contracts have been exchanged for the acquisition of the freehold for consideration of approximately £49 million, including stamp duty, from the Canal and River Trust, formerly British Waterways Board.

The current tenant has a long term lease, with the rental level considered historic and subject to a rent review with effect from December 2016. Importantly, the acquisition includes the freehold of the iconic Camden Lock Market, previously acquired by Market Tech on a leasehold basis thereby significantly enhancing the value of the entire site.

Independent valuers have assessed the net initial yield to be circa 4.5% which is above recent comparable transactions in the area. The Interchange Building forms an important extension to Camden Lock Market offering strong potential upward rent revision and provides significant long term marriage value for the Company's Camden Market estate as a whole.

Camden Wharf, Jamestown Road, London NW1

The 50,000 sq ft property comprises a high quality mixed use building offering Grade A office accommodation on the upper floors and retail and leisure units at ground level. Providing extensive Regents Canal frontage and high street presence, the property is multi-let to strong-covenant media and leisure operators including CBS Outdoor and Whitbread. It is being acquired from Tesco PLC Pension Fund for a cash consideration of approximately £50 million, including stamp duty, reflecting a net initial yield of circa 4% with additional upside from outstanding rent reviews currently being negotiated.

This is a strategic acquisition for The Group and together with the ownership of 5-10 Jamestown Road creates an almost complete island with facades on three sides and potential future development improvement of the existing buildings.

New acquisition loan facility - Related party transaction

The Company has entered into a new acquisition loan facility ("The Facility") with Citwax Investments Limited ("Citwax"), the majority shareholder of the Company (and therefore a related party), for an unsecured loan of £125,000,000 to provide finance for specific acquisitions. The Facility is on substantially equivalent terms to, and is in addition to, the Company's existing working capital facility with Citwax. The Facility has a fixed interest rate of 4% per annum payable quarterly in arrears and is available to draw down until 30 June 2015. The Facility is repayable within three years however can be repaid early by the Company free of any interest penalty.

The directors of the Company consider, having consulted with its nominated adviser, that the terms of the Facility are fair and reasonable insofar as the Company's shareholders are concerned.

Charles Butler, Chief Executive Officer, said:

"These are highly strategic property acquisitions that extend the footprint of our Camden Market estate and propel our vision to significantly enhance Camden's built environment to create a world class living, working, retail and leisure destination under a single unified ownership. The assets straddle both banks of the Regents Canal and are ideally suited for future enhancement. We are very excited by these acquisitions." 

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About Market Tech

Market Tech combines the iconic Camden Market real estate assets with an e-commerce business operated through an online platform called market.com. Its real estate assets business is focused on retail, leisure and entertainment. The Company owns approximately 11 acres of real estate assets in Camden, including markets located in Camden Town, Hawley Wharf (also known as Camden Lock Village), Union Street Market (also known as Buck St Market or Camden Market) and Camden Lock Market. The Company also owns separate real estate assets on Camden High Street, Jamestown Road and Kentish Town Road.

www.market-tech.com