18th Oct 2007 07:01
Wichford plc18 October 2007 Wichford Plc ("Wichford" or the "Company") Disposal of Archway Tower and Portfolio Update Diversity of portfolio increases as level of rents subject to indexation also rise substantially 18 October 2007 Disposal Wichford PLC (AIM: WICH), the property investment company, announces the sale ofthe long leasehold property at Archway Tower, Islington, London, N1 to theScarborough Property Group for the sum of £11,040,000. The property is currentlylet to the U.K. Government on a 42 year lease expiring in December 2009. The sale price achieved compares favourably both with the total book cost of£10,175,000 when the property was acquired in September 2005 and the valuationin March 2007 of £9,500,000. Portfolio update • UK/Europe split Today's disposal is the latest in a series of profitable property sales in theUK announced by the Company. The proceeds from the sale will be utilised to fundWichford's on-going expansion into Continental Europe in line with the strategyoutlined at the time of the Company's placing in February 2007. The Company nowowns properties in Germany, the Netherlands and France and the split of theCompany's portfolio is 75.8% in the U.K. and 24.2% in Europe. • Indexation increases The company has also recently completed a deed of variation in relation toCentenary Court, Bradford and rent reviews at Rufus House, Carlisle and ChantryHouse, Chester, all of which resulted in rental increases and index-linking.Over 45% of the Company's rental stream is now subject to indexation. Michael Sheehan, Chairman of Wichford Plc said: "The sale of Archway continues our stated strategy of making selective disposalsin the UK to fund expansion in Continental Europe. This new policy, begunearlier this year, has proved successful as demonstrated by the split between UKand European properties highlighted today. Wichford remains focused on the conversion of as many of its rent reviews to anindex-linked formula as possible. With over 45% of the Company's income nowbeing subject to indexation, this strategy continues to improve Wichford'searnings visibility." Enquiries: Wichford PLCRichard Britten-Long Tel: 020 7016 6150Philip Cooper Tel: 020 7495 7111 Citigate Dewe Rogerson Tel: 020 7638 9571George CazenoveHannah Seward Evolution Securities Ltd Tel: 020 7071 4300Tim WorlledgeJeremy Ellis Notes to Editors Wichford PLC (AIM:WICH) is a property investment company, with a portfoliofocused on UK investment property outside Central London occupied exclusively byUK Central Government bodies. Approximately a quarter of the portfolio comprisespublic sector rented properties in France, Germany and the Netherlands Including today's disposal, the Company currently owns 78 properties with agross asset value of circa £668 million generating a rental income of circa£39.5 million per annum. The Company's portfolio of properties has unit valuesusually between £2m and £30m. The Company's current core portfolio has aweighted average unexpired lease term of circa 11 years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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