TIDMCRC

RNS Number : 9646V

Circle Property PLC

17 December 2021

17 December 2021

Circle Property Plc

("Circle", the "Company" or the "Group")

Completion of Disposal of One Castle Park, Bristol and Disposal of 141 Moorgate

Further to the announcement dated 1 September 2021, Circle Property Plc (AIM: CRC), which invests in, develops and actively manages well-located regional office assets, announces that it has completed the sale of One Castle Park, Bristol for GBP20 million (the "Disposal").

The sale price of GBP20 million represented a 3.9% increase on the 31 March 2021 valuation of GBP19.25 million. The investment property was acquired by the Company in November 2012 for GBP4.165 million.

The Company has a financing facility in place with RBS and HSBC for GBP100 million comprising a senior revolving facility for GBP65 million (of which the Company has drawn GBP58.544 million) with an "accordion" option for a further GBP35 million (the "Facility").

In line with the Board's commitment to reduce the Company's gearing, GBP18 million of the sale proceeds from the Disposal will be used to repay a proportion of the Facility. Following this repayment, the Group's LTV will reduce to 36.9% (excluding cash at bank) with a Group cash balance of GBP7.6 million, reflecting a net LTV of 29.9%. The total amount drawn down under the Facility will reduce to GBP40.544 million.

In addition, the Company is pleased to announce that it has exchanged contracts to sell 141 Moorgate, London to Moorgate (141) Properties Ltd. The total sale price of approximately GBP7.1 million (of which 51.04% is due to the Company as head lessee) represents a 27.3% increase on the 30 September 2021 valuation of GBP2.85 million (the valuation of the Company's 51.04% interest). The cash proceeds from the sale due to the Company of GBP3.6 million will, on completion, be utilised to reduce the Company's gearing.

John Arnold, Chief Executive of Circle Property Plc, said:

"The disposal of One Castle Park allows the Company to significantly reduce its loan-to-value in accordance with our previously stated objective and the GBP0.75 million gain over the 31 March 2021 valuation, makes a sizeable contribution to this year's profit, with the sale of 141 Moorgate contributing a similar amount over the 30 September 2021 valuation."

 
                             +44 (0)207 930 
 Circle Property Plc          8503 
 John Arnold, CEO 
  Edward Olins, COO 
 
                            +44 (0) 207 397 
 Cenkos Securities           8900 
 Katy Birkin 
  Mark Connelly 
 
                            +44 (0) 203 897 
 Radnor Capital Partners     1830 
 Joshua Cryer 
  Iain Daly 
 
                            +44 (0) 203 757 
 Camarco                     4992 
 Ginny Pulbrook 
  Rosie Driscoll 
  Toby Strong 
 

About Circle Property Plc

Circle focusses on acquiring assets in regional cities, many of which have significant office supply constraints, and on office assets with active management potential (refurbishment opportunities, under-rented or vacant properties or short leases), rather than just maximising initial rental yields.

Circle is not a Real Estate Investment Trust (REIT) and can actively recycle proceeds from asset sales into its refurbishment and redevelopment pipeline, as well as future investment opportunities, therefore targeting a broader range of returns for shareholders, which are primarily driven by NAV growth.

As well as already delivering substantial increases in NAV, the Company's portfolio has significant reversionary potential with current total estimated rental values of GBP10.92 million per annum, compared to contracted rent of GBP8.70 million at 31 March 2021. The Company has a portfolio of 10 regional commercial property investment and development assets in the UK valued at GBP110 million as at the date of this announcement (using 30 September 2021 valuations).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DISFFEESMEFSELE

(END) Dow Jones Newswires

December 17, 2021 02:00 ET (07:00 GMT)

Circle Property (LSE:CRC)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas Circle Property.
Circle Property (LSE:CRC)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas Circle Property.