Disposal

RNS Number : 9400B

Close High Income Properties PLC

22 August 2008

 



CLOSE HIGH INCOME PROPERTIES PLC - DISPOSAL

Close High Income Properties PLC

The Board of Close High Income Properties plc ('the Company') is pleased to announce the sale of the following industrial properties within the Ordinary Share property portfolio to Spencer Business Parks Limited:

• Henwood Business Park, Ashford

• Units 4 - 8 Oakhill Trading Estate, Leicester

• Units 1 - 17 Bellway Industrial Estate, Newcastle

• Units 1 - 6 Walker Riverside, Newcastle

• Units 1 - 5 Kirkleatham Business Park, Redcar

• Stadium Court, Barbot Hall Industrial Estate, Rotherham

• 21 - 23 Greenfield Business Centre, Royston

Contracts for the sale of these properties have been exchanged today for a total cash consideration of £17.25 million. A deposit of £862,500 has been received with the balance payable on completion which is only conditional on receiving the appropriate landlord consents on the long leasehold interests at Leicester, Redcar and Rotherham. This is expected to occur within the next two months.

These properties were last valued by the Company's valuer, DTZ Debenham Tie Leung on 30 June 2008 at £19.43 million and their disposal will result in a loss of £2.39 million. However, the properties have all generated significant income since they were first acquired. The properties were originally purchased between November 2002 and July 2004 at a total cost of £17.24 million.

The proceeds from sale will be used partly to reduce the Company's outstanding debt as well as for general working capital purposes. After repaying debt the Company will have circa. £10.3 million of surplus cash. This liquidity will enable CHIP to continue to pay capital distributions up to the 2010 Annual General Meeting when, as previously announced, there will be a vote on the possible winding up of the Company.

The Company intends announcing its half year results to 30 June 2008 on Friday 29 August 2008.

For further information please contact:

Peter Roscrow 

Close Investments Limited

Tel: [phone]

 

END

 

 

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