22nd Aug 2006 15:01
Avon Rubber PLC22 August 2006 22 August 2006 Avon Rubber p.l.c. SALE AND LEASEBACK OF HAMPTON PARK WEST At the time of our Interim Statement on 22 May 2006 we said that the proposeddisposal of the Automotive business represented an opportunity to review theappropriate capital structure for the continuing Group. As part of this process the Board announces that Avon Rubber p.l.c. ("Avon" orthe "Group") has sold its freehold interest in the property at Hampton ParkWest, Melksham, Wiltshire to Clerical Medical Managed Fund, a client of InsightInvestments for £12.36 million. The proceeds were paid in cash on completion andhave initially been applied to reduce indebtedness. The site is the Group'sCorporate Headquarters and primary UK manufacturing factory base for itsProtection and Engineered Products business. Avon has taken a 15 year full repairing and insuring lease of the building fromcompletion of the sale with a break option for Avon after 10 years. The lease isat a rent of £0.8 million p.a., equating to £5 per sq ft. The property has acarrying value of £9.0 million with a depreciation charge of £0.2 million p.a.The transaction is expected to be earnings neutral. < ENDS > For further enquiries, please contact: (Local/Trade Press) 01225 896300Fiona Stewart Weber Shandwick Square MileRichard Hews 020 7067 0700Rachel TaylorStephanie Badjonat NOTES TO EDITORS: Avon Rubber p.l.c. is an international polymer engineeringgroup adding value through material, manufacturing and industry sectorexpertise. The Group is currently capitalised at approximately £50.9 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Avon Protection