12th Sep 2005 07:00
Wichford plc12 September 2005 12 September 2005 WICHFORD PLC Three new properties acquired for £20.37 million Wichford plc ("Wichford" or "the company"), a property investment company, ispleased to announce that it has acquired an office building in Taunton, Somersetand has exchanged contracts to acquire two further buildings, one in Salford,Manchester and one on the St. Asaph Business Park in North Wales for a totalconsideration of £20,370,000 reflecting a net yield of 6.4%. The combined acquisitions total 107,021 sq ft and currently produce a totalrental income of £1,379,622 per annum. Woodfield House & Riverside Chambers, Taunton Taunton is the largest of the three acquisitions and consists of a modern officebuilding of 62,775 sq ft and was purchased for £12,260,000. The total income of £788,100 pa is received entirely from the UK Government inthe form of the Secretary of State for the Environment on two leases expiring inMarch 2016. Woodfield House is occupied by the Crown Prosecution Service andthe Treasury Legal Department and Riverside Chambers is occupied by the CharityCommissioners. The purchase price reflects a net initial yield of 6.1%. Dallas Court, Salford The property consists of a 1989 built self-contained office of 16,637 sq ft letuntil June 2014 to Ericsson but sub-let in its entirety to the UK Government inthe form of the Secretary of State for the Environment, Transport and theRegions. The building is occupied by the Immigration Authority. The interest acquired is a long leasehold with 109 years unexpired at a rent of15% of the rental value of the property. The rent under the lease to Ericsson is£154,200 which is £9.27 per sq ft. The net income received by Wichford istherefore £133,100 per annum. The purchase price is £1,875,000 which is a net initial yield of 6.7%. St. Asaph Business Park, North Wales The company has exchanged contracts to acquire the above office building whichis currently under construction and due to be completed in October 2005. The premises will total 27,609 sq ft and are let in their entirety to the NorthWales Police for a term of 10 years at an initial rent of £457,422 per annumwhich reflects £16.57 per sq ft. There is a minimum uplift at the rent review in2010 to £517,531 per annum. The company has agreed to purchase the building at completion for £6,235,000 toshow a net initial yield of 7%. Michael Sheehan, Chairman, commented; "The acquisitions announced todaytotalling £20 million bring the total spent since the placing in June to justover £46 million at a blended initial yield of 6.53%." Enquiries Citigate Dewe Rogerson Tel: 020 7638 9571Patrick Toyne-Sewell/George Cazenove Notes to Editors Wichford plc listed on AIM in August 2004. The Company maintains a portfolio ofproperties across the UK with unit values usually between £3 million and £15million. Wichford's portfolio has a current gross asset value of approximately£260 million, of which £140 million worth has been acquired since the Company'sadmission to AIM, and generates an annualised rental income of around £ 17.5million. Wichford's properties are occupied by UK Central Government bodies and all areoutside Central London. Wichford is seeking to benefit from the Government'scommitment to act upon the recommendations of the Lyons Review (March 2004) thatabout 20,000 public sector jobs should be relocated outside London and theSouth-East of England over the next seven years. The Company's current portfoliohas a weighted average unexpired lease term in excess of 10 years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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