8th May 2007 07:02
Artisan (UK) PLC08 May 2007 8 May 2007 Artisan (UK) plc Investment property strategy The Board announced in its trading update on 16 February 2007 that it wasexamining the possibility of utilising its in-house skills to re-establish aproperty investment arm within the Group. Following further review, the Boardhas decided to pursue this strategy and hold selected properties from itsongoing development property portfolio where it believes the covenant of thetenant, possibility for further development or medium term asset appreciationwill provide scope for additional attractive returns to the Group over thedisposal of the property on completion. It will also consider selectivelyacquiring third party properties where it believes that there is similar scopefor attractive returns. The financial effects on the Group of retaining selected properties willprimarily be an increase in borrowings as these properties are financed and arise in related interest charges offset by a rental income stream. Recognitionthrough the income statement of the revaluation of the property at the point ofcompletion as opposed to the recognition of profit on sale, is expected to havea broadly neutral effect on the declared profit on ordinary activities beforetaxation of the Group. In respect of the transaction announced today, moredetails of which are set out below, the revaluation surplus is expected to bereflected in the Income Statement with some contribution in the 15 months to 30June 2007 and the balance in 2008. As the first investment under this policy, the Board of Artisan is very pleasedto announce that a major forward let of a 36,600 ft2 industrial unit has beensecured to Black Teknigas Limited, a subsidiary of Watts Industries Europe BV.The agreement to lease is in respect of a bespoke unit at Colmworth BusinessPark, St Neots, due for build completion early 2008. There is provision for thedevelopment of an extension to this unit of 18,500 ft2, at the tenant's, optionover the next 5 years. Further details of this forward let are set out in aseparate announcement also released today. Artisan (UK) plcChris Musselle Chief Executive 01480 436666 [email protected] Brewin Dolphin Securities Limited Nominated advisers 0121 236 7000Ifor Williams Bankside Consultants Financial PR advisers 020 7367 8888Simon Rothschild 07703 167065Louise Mason Company website: www.artisan-plc.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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