14th Jul 2006 07:01
Rank Group PLC14 July 2006 The Rank Group agrees sale & leaseback and transfer of surplus leasehold properties The Rank Group Plc ('Rank') has agreed a net £172m transaction with EarthEstates Limited and Solarus Estates Limited ('Earth-Solarus') for the sale andleaseback of 43 of Rank's UK properties and the transfer of liabilities relatingto a further 44 surplus leasehold properties. The agreement includes the £211m sale and leaseback of a portfolio of 40 Meccabingo clubs and four Grosvenor casinos (one property comprises both a casino anda bingo club). Rank will lease back the properties over 15 years at an initialrate of £11.2m per annum. This represents an initial yield of 5.3% on thefreehold portfolio. The book value of the properties was £137m. In addition, Rank will transfer to Earth-Solarus liabilities relating to 44surplus leasehold properties. The leasehold liability transfer price is £39m. There will be a pre-tax net book gain on the transaction of approximately £53m.It is not anticipated that the transaction will attract any capital gains tax. The proceeds of the transaction will be used to pay down debt. Both Earth Estates Limited and Solarus Estates Limited are joint venturecompanies between William Pears and the Khalastchi family. -ends- Enquiries: The Rank Group Plc Tel: 020 7535 8031Dan Waugh, Director of Investor Relations Maitland Tel: 020 7379 5151Suzanne Bartch This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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