12th Dec 2006 07:33
Arbuthnot Banking Group PLC12 December 2006 ARBUTHNOT BANKING GROUP PLC SALE AND LEASEBACK OF ARBUTHNOT HOUSE Arbuthnot Banking Group PLC today announces that it has exchanged contracts onthe sale and leaseback of Arbuthnot House, 20 Ropemaker Street. The Boarddecided to proceed with the transaction as a result of a £35 million offerresulting in a profit of £15 million over the original cost and the favourableleaseback terms that have been achieved. Commenting on the transaction HenryAngest, Chairman and Chief Executive said: "This transaction demonstrates our ability to be opportunistic in acquiring abuilding at close to the bottom of the property market and selling in afavourable market. The good price together with the operational flexibilitygranted in the lease gives the business more opportunities over the medium term.The Board will now consider its options with regards to the extra capital thisgives the Group." Arbuthnot Banking Group PLC acquired the building in August 2003 and following arevaluation in 2004 the building was carried in the 31 December 2006 balancesheet at £20.7 million. After allowing for associated costs, a book profit(before tax) of approximately £11.0 million is expected to arise on the sale.Completion of the sale is expected to take place on 20 December 2006. Thebuilding will be leased back on a 15 year term for the entire 42,000 sq ft witha rent of £1.7 million p.a. with an ability to break the lease at 5 and 9 years. In the second half of the year, Arbuthnot Banking Group strengthened itsmanagement team with the appointment of Gary Jennison (Chief Executive, SecureTrust Bank) and Paul Sheriff (Group Finance Director). Following theseappointments there has been a restructuring incurring additional exceptionalcosts in the second half which are expected to be circa £0.9m. In accordance with its normal practice, Arbuthnot Banking Group PLC intends tomake a trading statement in early January to update the market on performance inthe second half of 2006. Press enquiries: Arbuthnot Banking Group PLC Tel: 020 7012 2400Henry Angest, Chairman and Chief ExecutiveAndrew Salmon, Chief Operating OfficerPaul Sheriff, Group Finance Director Maitland Tel: 020 7379 5151Emma BurdettLydia Pretzlik This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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