KCR and Inland Homes property transaction

RNS Number : 1664S

KCR Residential REIT PLC

21 June 2018

 

21 June 2018

KCR Residential REIT Plc

("KCR" or "the Company")

Property acquisitions (including first transaction under the Inland Homes strategic relationship)

Further to KCR's announcement of its strategic relationship (the "Agreement") with Inland Homes ("Inland") on 31 May 2018, KCR is pleased to announce the first transaction to take place under the terms of the Agreement. KCR has entered into an option agreement to acquire two properties from Inland for a total consideration of £2.56 million payable in KCR shares and/or cash. The acquisition is targeted to proceed on or before 30 June 2018. KCR would be acquiring the entire share capital of the SPV that owns the freehold and long leasehold of the properties. The properties are fully let on effective full repairing and insuring leases and generate an annual income of £133,750, a net yield on consideration of 5.2%.  

KCR is also pleased to confirm that, further to the announcement on 3 April 2018, it will be completing the acquisition of 17 apartments in West London for a total consideration of £5.35 million payable in cash on 29 June 2018. This transaction will significantly increase the Company's net asset value per share.

Dominic White, the chief executive of KCR, commented:

"This transaction is a significant step forward for the Company and underlines the commitment of both parties to implement the Agreement that was announced three weeks ago. KCR and Inland are currently at an advanced stage in negotiations for KCR to acquire two further properties in the Inland portfolio and we will update the market on these when appropriate."

Contacts:

KCR Residential REIT plc Dominic White, Chief executive www.kcrreit.com	[e-mail] [phone]
Arden Partners plc Steve Douglas Benjamin Cryer	[phone]
Yellow Jersey PR Charles Goodwin Abena Affum	[phone] [phone]

Notes to Editors:

KCR's objective is to build a substantial UK low-to-mid-priced residential property portfolio that generates both secure income flow and increasing net asset value for shareholders. KCR acquires blocks of studio, one-and two-bed apartments that are close to transport links, shopping and leisure.  

 

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