Disposals

RNS Number : 6939W

Circle Property PLC

22 August 2022

 

22 August 2022

Circle Property Plc

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

Disposals

Circle Property Plc (AIM: CRC), is pleased to announce, in line with its disposal strategy, that it has exchanged contracts on the sale of Kents Hill Business Park, Kents Hill, Milton Keynes ("Kents Hill") (buildings K1,K2 and K3) comprising approximately 80,576 sq ft of office accommodation to Corum XL c/o Corum Asset Management, at a combined sale price of £17.23 million, an increase of 10.1% on the 31 March 2022 valuation of £15.65 million.

The sale of buildings K1 and K2 completed simultaneously on exchange at a sale price of £12.73 million. Completion of the sale of building K3, at a sale price of £4.5 million, is expected to take place prior to the end of the calendar year, following the completion of the refurbishment currently underway.

Kents Hill (K1, K2 and K3) was acquired by the Company in December 2013 for approximately £11 million and the profit before tax for the year ended 31 March 2022 attributable to Kents Hill was £0.56 million.

In addition, the Company has also exchanged contracts on the sales of Cheltenham House, Temple Street, Birmingham, comprising approximately 16,469 sq ft of office and restaurant accommodation to A S Leisure Properties Limited, for £4.7 million, and Elizabeth House, London Road, Staines comprising approximately 14,829 sq ft of office accommodation to MAP Commercial Properties Limited for £3.5 million. The sale prices represent a decrease of 9.6% and an increase of 16.7%  on the 31 March 2022 valuations of £5.2 million and £3 million, respectively. Completion is expected on 7 September 2022 and 28 September 2022, respectively.

As previously announced, in June 2022, the Company repaid the amount outstanding under its debt facility in full and is now debt free. The net proceeds from the disposals will be held as Group cash and the Board expects that a minimum of two returns of capital will be made to Shareholders, the first of which is expected to occur by March 2023. Following completion of the sale of Kents Hill K1 and K2, the Company's net cash balance is approximately £16.5 million.

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.

Circle Property Plc	[phone]
John Arnold, CEO Edward Olins, COO
Cenkos Securities plc	[phone]
Katy Birkin Mark Connelly Radnor Capital Joshua Cryer Iain Daly	[phone]
Camarco	[phone]
Ginny Pulbrook Toby Strong

 

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