TIDMCRC

RNS Number : 3051K

Circle Property PLC

01 September 2021

1 September 2021

Circle Property Plc

("Circle" or the "Company")

Disposal of One Castle Park, Bristol for GBP20 million

Circle Property Plc (AIM: CRC), which invests in, develops and actively manages well-located regional office assets, is pleased to announce that it has exchanged contracts to sell One Castle Park, Bristol to Boultbee LDN Capital Ltd.

The sale price of GBP20 million represents a 3.9% increase on the 31 March 2021 valuation of GBP19.25 million, with completion expected to take place on 16 December 2021. The investment property was acquired by the Company in November 2012 for GBP4.165 million.

One Castle Park, Bristol, comprises a refurbished multi-let city centre office building providing 79,359 sq ft of accommodation with a weighted unexpired lease term of 3.3 years to expiry and total rent passing of GBP999,543 per annum (GBP16.42 psf overall). The profit before tax for the year ending 31 March 2021 attributable to One Castle Park was GBP0.65 million.

The cash proceeds from the sale (subject to completion) will be utilised, in line with previous announcements, to reduce the Company's gearing from the current level. The Company has a number of assets that have benefited from an active management approach where considerable value has been added following redevelopment, lease restructures or renewals.

Further announcements, will be made, as appropriate.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

 
                           +44 (0)20 7930 
 Circle Property Plc        8503 
 John Arnold, CEO 
  Edward Olins, COO 
 
 Cenkos Securities plc    +44 (0)20 7397 8900 
 Katy Birkin 
  Mark Connelly 
 
  Radnor Capital 
  Joshua Cryer 
  Iain Daly                 +44 (0)20 3897 1830 
 Camarco                  +0203 757 4992 
 Ginny Pulbrook 
  Toby Strong 
 

About Circle Property Plc

Circle is amongst the best performing quoted UK real estate companies having delivered 84% NAV growth and a 105% total return (NAV growth and dividends) since IPO in 2016.

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 2020. The Company has a portfolio of 13 regional commercial property investment and development assets in the UK valued at GBP132.15 million as at 31 March 2021.

* valuation figures stated after deducting the value of Power House, Davy Avenue, Milton Keynes (being GBP3.3 million as at 31 March 2020 and GBP3.25 million as at 30 September 2020) which was sold by the Company for GBP3.55 million in March 2021.

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September 01, 2021 02:00 ET (06:00 GMT)

Circle Property (LSE:CRC)
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