24th Jan 2005 07:00
Wichford plc24 January 2005 24 January 2004 Wichford plc Acquisition of two properties for £9.2 million Wichford plc ("Wichford" or the "Company"), a property investment company with aportfolio focused on UK investment property outside Central London occupiedexclusively by UK Central Government bodies, today announces the acquisition oftwo more properties in Swindon and York for a total cash consideration of £9.2million. The total combined income on the two properties is £699,845 per annumgiving an initial yield of 7.6%. The first property known as Delta 900, Delta Business Park, Swindon is a modernoffice building of 30,495 sq.ft. occupied by the Ministry of Defence. It waslet to the Secretary of State for the Environment for 25 years on 25 March 1989. The current net rent is £432,990 per annum. Wichford has exchanged contractsto acquire the property for £5.65 million to reflect a gross yield of 7.6% andcompletion is due at the end of January. The second property is known as Kettlestring Lane, Glidewell, York and is anewly constructed three storey office building of 23,192 sq.ft. It is let byway of three leases to the First Secretary of State and the North YorkshirePolice. All three leases are for 15 years from February 2005 with break clausesat Year 10. The total income is £266,855 per annum and Wichford has exchangedcontracts at a price of £3.56 million reflecting a gross initial yield of 7.5%. Completion is due in mid-February. Michael Sheehan, Chairman of Wichford plc said: "We are very pleased to have completed these acquisitions which fit our criteriaof being good quality, modern properties with good yields. We have now madeover £70 million worth of property acquisitions which has increased the value ofour portfolio to over £200 million. We continue to look for properties whichfit our strategy, which is supported by reports last week that almost 6,000civil service posts in and around London have been identified for relocationinto the regions with more to follow. We continue to believe our strategy willprovide attractive returns for shareholders over the medium term." Enquiries Citigate Dewe Rogerson Tel: 020 7638 9571Patrick Toyne-SewellGeorge Cazenove Notes to Editors Wichford plc listed on AIM in August 2004. Assuming completion of the aboveacquisitions, the company will have properties under management with a grossasset value of over £200 million generating a rental income of approximately£14.5 million per annum. The company maintains a portfolio of properties acrossthe UK with unit values usually between £3 million and £15 million. Theproperties are occupied by UK Central Government bodies and all are outsideCentral London. Wichford is seeking to benefit from the Government's commitmentto act upon the recommendations of the Lyons Review (March 2004) that about20,000 public sector jobs should be relocated outside London and the South-Eastof England over the next seven years. The Company's current portfolio has aweighted average unexpired lease term in excess of 10 years. The company's strategy in the long term is to use funds raised by its listing onAIM to build a significant property portfolio by purchasing up to an additional£125 million of UK Central Government occupied properties and achieve a targetgross value for its portfolio of up to £250 million within 12 to 15 months. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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