Acquisitions

29th Jun 2005 07:00

Wichford plc29 June 2005 29 June 2005 WICHFORD PLC Four new properties acquired for £13.74 million Wichford plc ("Wichford" or "the company"), a property investment company, todayannounces that it has exchanged contracts on the acquisitions of four Governmentoccupied offices; two in Birmingham, and one each in Rotherham and Leeds for atotal consideration of £13.74 million. The four buildings produce a current rental income of £990,125 per annum and theblended yield on acquisition is 6.8%. The largest property is Jefferson House, Park Place, Leeds and is let to theSecretary of State for the Environment until 2015 at a current rent of £540,000per annum. This represents £16 per sq ft. Wichford acquired the property for£8,180,000, a net initial yield of 6.25%. Two of the other three properties are job centres already converted to the newjob centre plus format and are located in the Birmingham suburbs of Spark Hilland Smethwick. The total purchase price was £3,663,775 and with a combinedrental income of £315,625 per annum the net initial yield is 8.1%. The propertyin Spark Hill is let until 2020 with a break clause in 2010 and Smethwick is letuntil 2022 with a break clause in 2012. The fourth building is in Rotherham and is let to the Environment Agency until2023 with a break in 2013. The rent is £134,500 per annum and the price of£1,900,000 reflects a net initial yield of 6.7%. The combined acquisitions total 70,373 sq ft. With a total rent income of£990,125, the average rent per sq ft is £14. Michael Sheehan, Chairman of Wichford, commented, "These acquisitions fit ourcriteria of being good quality, modern properties with strong yields. Thesepurchases follow our successful placing of £100m worth of shares earlier thismonth and demonstrate our determination to provide attractive returns forshareholders over the medium term." 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£235 million, of which £103.7 million worth has been acquired since theCompany's admission to AIM, and generates an annualised rental income of around£13.5 million. 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 Exchange

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