Sale & Leaseback of Head Office building

RNS Number : 0489H

Nexus Infrastructure PLC

04 April 2022

 

Nexus Infrastructure PLC

4 April 2022

Nexus Infrastructure plc

("Nexus" or the "Company" or the "Group")

Sale & Leaseback of Head Office building

Nexus Infrastructure plc (AIM:NEXS), a leader in enabling the energy transition by delivering sustainable infrastructure, announces the successful completion of a sale and leaseback transaction of Nexus Park, the Group head office building.

Nexus Park was completed in 2021 and has been successfully occupied by all subsidiaries of the Group during the summer of 2021. The Group has completed the sale and leaseback transaction of the freehold of Nexus Park with Dorsel U.K. 4 Limited.

The disposal included the 4.7 acre site and the three story, 35,000 sq ft head office building that all constitutes Nexus Park. The assets are being sold at net book value, and so a breakeven result is being recorded, prior to disposal costs of £150k.  The proceeds of £13.5m will be used to clear existing bank debt totalling £10.8m, with the balancing £2.7m enhancing our cash reserves. 

The Group has simultaneously entered into a 20 year lease for Nexus Park, which will create an IFRS 16 Right of Use asset of £11.3m and an associated Lease Liability of £11.4m.

Commenting on the transaction, Mike Morris, Chief Executive Officer, said:

"I am pleased to have successfully completed this transaction. The proceeds clear the bank loans associated with the development of the property and crystalise our investment in the land. Our balance sheet is strong and now free of borrowings, which will support our future growth."

Enquiries:

Nexus Infrastructure plc Michael Morris, Chief Executive Officer Alan Martin, Chief Financial Officer	Tel: [phone]
Numis Securities Limited (Nominated Adviser & Broker) Oliver Hardy (Nomad)   Heraclis Economides  Ben Stoop	Tel: [phone]
Financial Public Relations Camarco Ginny Pulbrook Rosie Driscoll	Tel: [phone]

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person responsible for making this announcement is the Company Secretary.

About Nexus

Nexus is enabling the energy transition by delivering sustainable infrastructure. The Group's capabilities are:

Multi-Utilities   - TriConnex, our multi-utilities business, designs, installs and connects energy, water, fibre networks and electric vehicle charging infrastructure on new residential developments. The business offers end ‑ to ‑ end solutions with the goal of being recognised as the UK's leading independent provider of utility connections to new developments.

Energy  Transition  - eSmart Networks, the energy transition specialists, provides public electric vehicle charging, industrial electrification and renewable energy connections. The business was created to respond to the UK's need for charging infrastructure as the transition to electric vehicles gathers pace and has since broadened its services to provide grid connection solutions and renewable energy infrastructure.

Civil  Engineering  - Tamdown, our civil engineering business, provides a range of civil engineering and infrastructure services to the UK housebuilding and commercial sectors. Services include earthworks, highways, substructures and basements, installing sustainable drainage systems, as well as high-rise construction. It has an established market-leading position having been in operation for over 40 years.

 

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