9th Jan 2006 07:00
Wichford plc09 January 2006 9 January 2006 Wichford plc. Four leases extended: NAV rises by 4% Wichford plc ("Wichford" or "the Company"), the property investment company,today announces that it has signed three lease extensions and a deed ofvariation, which will lead to the company's Net Asset Value rising 4% to 179p.Wichford also provides an update on its Active Portfolio which now represents16.7% of the company's entire portfolio, reduced from 22.8% previously, whichwill allow for further acquisitions for the Active Portfolio. The properties involved in the lease extensions are: • Castle House, Lisbon Street, Leeds This property was acquired on 8 November 2005 at a total cost of £19,050,171 andis let until 2023. The rent at acquisition was £1,005,000 per annum, with thenext review due in December 2008. By way of a deed of variation and in return for a premium the tenant has agreedthe rent review now with the next rent review being in 2013 and from December2008 the rent will increase in line with the Retail Price Index. • Cheviot House, Washington This property was acquired on 5 November 2004 at a total cost of £2,557,212. Itwas let at £190,000 per annum until October 2008 with a tenant's option to breakin March 2006 and, with such a short lease, has been part of the company'sActive Portfolio. Following the tenant's decision not to exercise this breakclause, Wichford has successfully negotiated a new full repairing and insuringlease with a term certain of 15 years in return for a premium. The next rentreview will be in 2010. Having converted this property from a short lease expiry to a new long lease itwill now be moved out of the company's Active Portfolio into its Core Portfolio. • Chailey House, Bedford. This property was acquired on 22 December 2004 at a total cost of £1,445,601.It was let at a rent of £115,000 per annum for a term expiring in December 2006,and as such has also been part of the Active Portfolio. The tenant has again taken a new lease for a term certain of 15 years in returnfor a premium. The next review will be in 2010. This property will also move out of Wichford's Active Portfolio and into itsCore one. • Unicorn House. Bromley. Unicorn House was acquired by Wichford on 29 September 2004 at a total cost of£14,526,698. It was let to the Secretary of State for the Environment untilMarch 2010 at a rent of £1,160,000 per annum. Wichford has now signed, with Trillium (Prime) Property GP Ltd, a reversionarylease extending the Government's occupation to March 2022 with a break on 31March 2018. Initially, the rent received by Wichford falls to £965,000 perannum but at the rent review in 2010 the rent will rise to a minimum of£1,200,000 million per annum, with all further rent reviews to be in line withthe increase in the Retail Price Index. Bromley was the largest property in the Active Portfolio and its move fromActive to Core is an important step in the company's strategy. NAV improvement Having carried out these lease extensions, Wichford has received indicativevaluations, from external valuers Atisreal, of £47 million for the fourproperties. This is an increase of £10.15 million over the year end figuresand, net of the costs of these lease extensions, will increase NAV per share by7.02p to 179.12p. Active Portfolio update. At 30 September 2005 the Company's Active Portfolio consisted of 13 propertieswith a total value of £60,825,000 and total rental income of £4,699,195 perannum. Following today's announcement and the addition to the Active Portfolio ofExchange House, Watford the acquisition of which was announced on 19 December2005 and High Street, Paisley the acquisition of which was also announced today,the Active Portfolio now consists of 12 properties with a total value of£57,105,000 and a current rental income of £4,283,195. The Active portfolio represents 16.7% of the company's entire portfolio as attoday's date. Michael Sheehan, Chairman of Wichford PLC, commented: "We are delighted with theprogress made on managing our Active Portfolio and the four lease improvementsannounced today. The increase in NAV per share is very pleasing and we believethe opportunities which exist in our current Active Portfolio will result in itbeing a key driver of increased shareholder value in the future." Enquiries Citigate Dewe Rogerson Tel: 020 7638 9571 Patrick Toyne-Sewell George Cazenove Notes to Editors Wichford plc is a property investment company, with a portfolio focused on UKinvestment property outside Central London occupied exclusively by UK CentralGovernment bodies, which listed on AIM in August 2004. The company has 55properties under management with a gross asset value of around £342,682,500generating a rental income of over £21,772,001 per annum. The company maintainsa portfolio of properties across the UK with unit values usually between £3million and £15 million. The properties are occupied by UK Central Governmentbodies and all are outside Central London. Wichford is seeking to benefit fromthe Government's commitment to act upon the recommendations of the Lyons Review(March 2004) that about 20,000 public sector jobs should be relocated outsideLondon and the South-East of England over the next seven years. The Company'scurrent portfolio has a weighted average unexpired lease term of 10.21 years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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