Acquisition of a development site in Haddington

RNS Number : 8426F

Ediston Property Inv Comp PLC

26 February 2018

 

 26 February 2018

Ediston Property Investment Company plc

(LEI: 213800JRL87EGX9TUI28)

Acquisition

Acquisition of a development site in Haddington, Scotland

Ediston Property Investment Company plc (LSE: EPIC) ("the Company") announces that it has acquired seven acres of development land on West Road, Haddington for £2,750,000 plus costs. 

The Royal Burgh of Haddington, which is located 19 miles east of Edinburgh, is the administrative centre for East Lothian, and has become an established commuter town due to its proximity to the A1 and Edinburgh.  The town has experienced significant housing growth over the past five years with approximately 1,500 homes either completed or under construction.

The site, which occupies a prominent position close to the A1, is allocated for retail and associated development in the Proposed Local Development Plan.  It has a planning permission for a supermarket and petrol filling station.  It is the intention of the Company to seek a new planning consent to permit a retail warehouse development.

There is a general shortage of retail warehouse space in East Lothian, particularly in Haddington, which means there is pent up demand from retailers who want to have representation in the town.  The Investment Manager has a number of discussions ongoing with these retailers and is expecting to pre-lease the majority of the site, thereby reducing development risk to the Company in the process.

Once the development is completed, it is anticipated that it will provide a robust and attractive income return for the Company, secured against national retailers.  The site acquisition will be funded from existing cash resources and debt facilities.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company's Investment Manager, said: "We are always looking at different ways to create value for our shareholders and this development will allow us to do that.  We have tracked this opportunity for some time and are confident that we can deliver an attractive income return for the Company that is significantly above market returns for similar developed assets."

For further information:

Ediston Properties Limited (Investment Manager)                 0131 225 5599

Calum Bruce     

Canaccord Genuity Limited                                                         020 7523 8000

Will Barnett                      

Neil Brierley                                     

David Yovichic  

Lansons               

David Masters                                                                                   07825 427 514

Laura Cronin                                                                                      0207 294 3607

Maitland Administration Services (Scotland) Limited (Company Secretary)                        

Donald Cameron                                                                              0131 550 3763

The 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. Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

Notes to editors:

Ediston Property Investment Company plc is a UK real estate investment trust (REIT) with a premium listing on the Main Market of the London Stock Exchange. The Company invests in UK commercial real estate assets to achieve its objective of providing its shareholders with an attractive level of income together with the potential for capital and income growth. It invests principally in three commercial property sectors: office, retail (including retail warehouses) and industrial, without regard to a traditional property market relative return benchmark. The Company launched in October 2014 and as of 31 December 2017 it owned 16 properties with a value of £319.3m.

Portfolio management services are undertaken by Ediston Properties Limited, which currently manages property assets across the UK for institutional investors.

 

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