4th Mar 2005 07:00
Wichford plc04 March 2005 4 March 2005 WICHFORD PLC PROPERTY ACQUISITION AND SHARE ISSUE 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 that it hasexchanged contracts for the purchase of a property in Manchester for £2,025,000. The property, at 1009 Oldham Road, is 15,118 sq.ft and is occupied as a JobCentre. It is let in its entirety to the Secretary of State for the Environmentand the current lease runs until April 2019 at a passing rent of £140,000 perannum. The purchase price will be made up of £1,925,000 in cash and £100,000 by way ofthe issue to the vendors of 52,438 new ordinary shares in Wichford plc at190.7p. At the purchase price Wichford will receive a net initial yield of6.8%. Enquiries Citigate Dewe RogersonTel: 020 7638 9571Patrick Toyne-SewellFiona Bradshaw 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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