AGM Statement

RNS Number : 6898P

Ground Rents Income Fund PLC

12 February 2019

 

Ground Rents Income Fund plc

("GRIO" or the "Company")

AGM Statement

Malcolm Naish, the Chairman of Ground Rents Income Fund plc (LSE: GRIO), a listed real estate investment trust investing in UK ground rents, will make the following statement at today's Annual General Meeting of the Company.

"Further to the announcement made on 1 February 2019 regarding the High Court judgment which has been handed down in connection with the Company's wholly owned subsidiary North West Ground Rents Limited ('NWGR'), the Company and NWGR continue to take advice on how best to respond to the judgment.

"The court ordered the temporary hoardings which had been erected by Carillion outside the hotel as an exclusion zone to be removed by 28 February 2019. It is expected that the completion of their removal will be finished within days. 

"The cost of the permanent remedial works to the façade of Beetham Tower, Deansgate, Manchester, has been estimated by NWGR's advisers, based on their recommended solution, to be approximately £4.0million, excluding VAT, any professional advisory costs and damages yet to be determined.  Carillion was the contractor which constructed the building and from the date the faults in the façade were discovered in the summer of 2014, with its subcontractor BUG, began investigating the solution to the faults and how repairs could be put into place. These investigations and remedial work proposals were in the final phases of planning when Carillion went into compulsory liquidation in January 2018.

"NWGR is pursuing the proceedings it has already issued against Carillion through its insurers and the sub-contractor BUG, through existing warranties and indemnities, which, if successful, would greatly limit any potential liabilities or irrecoverable losses for NWGR.  

 "However, in order to comply with the judgment NWGR will be required to finance the remedial work and any litigation costs while seeking recovery from Carillion's Insurers and BUG.  There can be no guarantee that NWGR will be successful in that recovery, but it has received legal and expert advice which suggests that its case is strong.

"If NWGR is unsuccessful in its action against the original contractor's insurers or the sub-contractor, it may be able to recover some of the remedial works costs from other parties. 

"NWGR is reliant on the financial support of the Company to finance further legal action and to comply with the judgment. The Company continues to review its own obligations in regard to NWGR and NWGR's obligations under the judgment.

"The Company will keep shareholders informed of progress and provide a further update as and when appropriate.

"I am pleased to report that, in all other respects, the Company is trading in line with the directors' expectations"

Contacts:

Ground Rents Income Fund plc
Simon Wombwell (Director)	020 7499 6424
Brooks Macdonald Funds Limited
James Agar (Head of Specialist Funds)	020 7659 3454
N+1 Singer (Broker)
James Maxwell / Ben Farrow	020 7496 3000
Tavistock (Media)
James Whitmore / Jeremy Carey	020 7920 3150
Appleby Securities (Channel Islands) Limited (Sponsor)
Andrew Weaver/Zim Ceko	01534 818230

 

END

 

 

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