12th Sep 2007 07:30
Warner Estate Holdings PLC12 September 2007 Warner Estate Holdings PLC WARNER ESTATE MAINTAINS POSITIVE MOMENTUM In advance of today's Annual General Meeting, Warner Estate Holdings PLC("Warner Estate"), the property investment and fund management company, makesthe following statement, " As advised in our Interim Management Statement last month, Warner Estate hasmade and continues to make encouraging progress in the current year, despite theslow down in the property market and the nervous nature of the financialmarkets. Whilst not ignoring current movement in these markets, we believe thatthe fundamentals of property investment and development over the long-termremain compelling. " We continue to identify opportunities, both within the £3.2 billion of assetswhich we manage and in the market place, with lease re-gearing, refurbishment ordevelopment potential where our management skills enable us to generate positivereturns despite the increasing cost of funds brought about by the recent risesin borrowing costs. Since our Interim Management Statement on 13th August, wehave made two further sales totalling £7.3 million which again were sold atprices above their 31st March values and we have a number more in solicitors'hands which are also being sold at prices ahead of their 31st March book value. " The £1.8 billion of assets managed by the fund management business continue toperform well with the Apia Regional Office Fund completing a £2 millionrefurbishment at 225 Bath Street, Glasgow and the Ashtenne Industrial Fundgaining planning consent for 75,000 sq ft of industrial development at Tameside,Manchester. Apia has also raised additional equity since 31st March increasingthe number of investors in the fund to 13. " In our £350 million development programme, our major retail project inFolkestone, the 200,000 sq ft Bouverie Place shopping centre, is due to open inearly November 2007, and is now more than 90% pre-let. In Bolton, our 100,000 sqft redevelopment of Market Place, jointly owned with Bank of Scotland, isprogressing well with H&M and Zara as anchor tenants and is expected to completetowards the end of 2008. " This activity is funded through debt and equity and the Group's debtfacilities are all of a long term nature and do not rely on the CMBS market. Thejoint ventures are over 90% hedged and the funds are also well protected. TheGroup has, as previously reported in our results to 31st March 2007,substantially reorganised its borrowing facilities so as to provide it with moreflexible and cheaper sources of funds. Towards the end of last year, a £150million cap at 6.25% effective from the end of June 2007 was put in place at acost of £0.9 million together with two callable swaps of £25 million each, thefirst at 4.34% from 31st March 2007 and the second at 4.16% from 31st March2008. These financial products will reduce the impact of the recent sharp risein money market interest rates and have a real value in excess of their currentbook cost. " The Board is confident that the right strategy is in place. Whilst uncertaintycontinues in the wider market, opportunities are expected to increase for theGroup to acquire property where value can be added. Shareholders will be updatedfurther on progress when our interim results are announced later this year." -ends- Date: 12th September 2007For further information contact: Warner Estate Holdings PLC cityPROFILEPhilip Warner, Chairman Simon CourtenayPeter Collins, Finance Director Tel: 020-7448-3244Michael Stevens, Property DirectorTel: 020-7907-5100Web: www.warnerestate.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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