CNN Caledonian Trust Plc

TIDMCNN

RNS Number : 8405I

Caledonian Trust PLC

16 December 2020

Information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

16 December 2020

Caledonian Trust plc

("Caledonian Trust" or the "Company")

Proposed sale of Ardpatrick Estate

Caledonian Trust, the Edinburgh-based property investment holding and development company, announces that, on 15 December 2020, it entered into an agreement to sell Ardpatrick Estate, the Company's largest rural development property, for a cash consideration of GBP2.7 million (exclusive of VAT) to two private individuals (the " Proposed Disposal ").

Ardpatrick Estate occupies a peninsula in Knapdale, Argyll, in Scotland looking towards Islay and Jura, on the north-west side of West Loch Tarbert. In addition to Ardpatrick House (1769 before extensions) the property extends over 1,000 acres with circa 10km of coastline, commands striking views and includes a grassland farm, moorland and rough grazing, an ancient oak forest, a commercial forest, a private beach, a named island, sporting rights and moorings.

The consideration is payable in cash to Caledonian Trust upon completion which is expected to take place on 24 March 2021. A deposit of GBP270,000 in cash (equivalent to 10 per cent. of the total consideration payable under the Agreement) will be lodged with Caledonian Trust's solicitors shortly.

The consideration payable under the Proposed Disposal is below the book value of GBP2.99 million which was attributed to Ardpatrick Estate as at both 30 June 2019, the last audited accounts published by the Company, and 31 December 2019, the date of the balance sheet of the Company's last published unaudited interim results. This book value comprises stock, primarily the houses on the Ardpatrick Estate, and investment property, being the land.

As Ardpatrick Estate is currently held primarily for development, the Company did not generate any material income in the year ended 30 June 2019 from the property. Rental Income generated from the property was less than GBP1,700 per annum in the year ended 30 June 2019. As such, other than the annual running costs associated with the Company maintaining the property, there were no profits or losses attributable to the Company in relation to its interest in the Ardpatrick Estate. Based on the terms of the agreement and the expected timetable for completion, the Company expects to incur a valuation loss of c.GBP299,000 on the sale of Ardpatrick Estate in the year ended 30 June 2021.

Under the terms of the missives entered into on 15 December 2020 there is no conditionality to completion of the Proposed Disposal other than standard contractual terms as expected on a residential property sale. It is anticipated that the completion of the Proposed Disposal will take place on 24 March 2021.

The Company intends to use the net proceeds from the Proposed Disposal to provide funding for the Company's existing property development programme, repay certain existing debt and provide general working capital.

The Company will release further announcements on the Proposed Disposal at the appropriate time.

Douglas Lowe, Chairman and CEO of Caledonian Trust, commented:

"The funds released from the Ardpatrick sale will allow us to fund the development of other sites with more immediate and higher development prospects and compensate for the Covid-19 induced delays in realising other ongoing developments.

We are happy that the purchasers of Ardpatrick will continue with the reinstatement of the Estate and expect to be resident there and to farm the land."

Enquiries:

 
 
Caledonian Trust plc 
Douglas Lowe, Chairman and Chief Executive Officer  Tel: 0131 220 0416 
Mike Baynham, Finance Director                      Tel: 0131 220 0416 
 
 
Allenby Capital Limited 
 (Nominated Adviser and Broker) 
Nick Athanas                                        Tel: 0203 328 5656 
 Alex Brearley 
 
 
 

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December 16, 2020 03:53 ET (08:53 GMT)

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