Disposal
24 Julio 2003 - 2:01AM
UK Regulatory
RNS Number:9023N
Hampton Trust PLC
24 July 2003
Hampton Trust PLC ("Hampton Trust" or the "Company")
24 July 2003
DISPOSAL OF PROPERTY
Hampton Trust announces that it has exchanged contracts with Crossways Property
Limited ("Crossways") for the disposal of City Gate House, Eastern Avenue, Gants
Hill, Ilford, Essex for a total cash consideration of #3.55 million.
Crossways has paid the Company a cash deposit of #355,000 upon exchange of
contracts with the balance due on completion, which is expected to take place on
20 August 2003.
The freehold property comprises an office building of 50,270 sq. ft. (4,670 sq.
m.) arranged over ground and twelve upper floors. The property, which provides
open plan and office suite accommodation, is currently let to a number of
tenants including Liberty Life Assurance Co. Limited and Confederation
Management Limited. The property, which is currently partly vacant, has a gross
passing rent of approximately #300,000 per annum representing an initial gross
yield of 8.5 per cent. The net passing rent on the property is approximately
#80,000 per annum.
The Company, having assessed the property, concluded that the building was in
need of substantial capital investment either through extensive refurbishment or
redevelopment. Having explored these options the Company decided that the
capital investment required would be more effectively used in other areas of the
business and as such they should dispose of the asset whilst its value as an
investment remained strong, thus leaving the potential of regeneration open to
the purchaser.
In the Company's most recent audited accounts, as at 31 March 2002, the book
value of this property was #4.2 million. This has subsequently been revalued to
#3.5 million during the year ended 31 March 2003, resulting in a profit on
disposal of approximately #50,000.
Enquiries:
Hampton Trust PLC Tel: 020 7499 4994
Graeme Jackson - Chairman & Chief Executive
David Diemer - Asset Director
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